South Korean retail investors rush to buy Samsung and SK Hynix single-stock leveraged ETFs ahead of regulatory tightening

TechFlow news, July 26, data shows that Korean retail investors heavily bought 14 single-stock leveraged ETFs on the 24th, with a single-day buying volume of about 450 billion won. Previously, Korean retail investors had consecutively net sold about 500 billion won over three days. According to data from the Korea Exchange and Koscom Check, as of July 26, retail investors net sold 14 individual stock leveraged products for three consecutive days from July 21 to 23, with a cumulative net selling amount reaching 547.17138 billion won. This trend completely reversed on July 24.

In just one day, individual investors net bought seven Samsung Electronics single-stock leveraged products, with a net buying amount of 103.8959 billion won; at the same time, they also net bought seven SK Hynix single-stock leveraged products, with a net buying amount of 350.02688 billion won.

Notably, this net buying occurred on "Black Friday," when the KOSPI index fell by more than 5%, and Samsung Electronics and SK Hynix both closed down between 7% and 8%. Affected by this, single-stock leveraged ETFs based on the stocks of these two companies also plummeted by 15% to 16%. Analysis suggests that the sharp decline in single-stock leveraged ETF prices attracted some investors to buy the dip. Additionally, as new regulations increasing minimum margin requirements will be implemented starting from the 31st, some individual investors may hope to increase positions by "averaging down" before tightening regulations, thus driving relevant demand. (Jin10)