TechFlow news, on July 19, "White-Haired Stock God" Serenity posted stating that currently SK Hynix American Depositary Receipts (ADR) have a premium of over 25% compared to local Korean stocks, while the conversion mechanism between ADRs and Korean stocks will officially open on July 29, which may create conditions for market arbitrage trading and drive the price spread between the two markets to narrow.
Serenity pointed out that currently only about 2.5% of SK Hynix shares are held as circulating US ADRs, with approximately 22.5% of shares still available for conversion in the future. As the conversion channel opens, arbitrage capital may profit by buying local Korean stocks and converting them into ADRs, thereby driving up Korean stock prices or exerting pressure on US ADR prices.
