South Korean Retail Investors Front-Run Regulatory Tightening by "Buying the Dip" on Samsung and SK Hynix Single Stock Leveraged ETFs

BlockBeats News, July 26th. Data shows that South Korean retail investors massively bought 14 individual stock leveraged ETFs on the 24th, with a daily purchase volume of approximately 450 billion Korean won. Previously, South Korean retail investors had net sold about 500 billion Korean won for three consecutive days. According to data from the Korea Exchange and Koscom Check, as of July 26th, retail investors net sold 14 individual stock leveraged products for three consecutive days from July 21st to 23rd, with a total net selling amount of 5471.7138 billion Korean won. This trend was completely reversed on July 24th. In just one day, individual investors net bought seven Samsung Electronics single-stock leveraged products, with a net purchase amount of 1038.959 billion Korean won; at the same time, they also net bought seven SK Hynix single-stock leveraged products, with a net purchase amount of 3500.2688 billion Korean won.

It is worth noting that this net buying occurred on "Black Friday," when the KOSPI index fell by more than 5%, and Samsung Electronics and SK Hynix closed down by 7% to 8%. As a result, single-stock leveraged ETFs based on these two companies' stocks also plummeted by 15% to 16%. Analysis believes that the significant drop in single-stock leveraged ETF prices attracted some investors to buy the dip. Furthermore, as the new rule raising the minimum margin requirement will be implemented starting on the 31st, some individual investors may wish to increase their positions through "cost averaging" before the tightening regulation, thereby driving the related demand. (FX Street)