On the first day of the increased basic deposit requirement, trading volume for single-stock leveraged exchange-traded funds (ETFs) plummeted. The basic deposit was raised from 10 million won to 30 million won, which is believed to have reduced accessibility for investors.
According to the Korea Exchange, the total trading volume for 14 single-stock leveraged ETFs, including those for Samsung Electronics and SK Hynix, was recorded at 244.01 million shares. This marks a 73.8% decrease compared to the previous trading day, which saw a volume of 932.98 million shares before the deposit increase. The trading value of the largest fund, 'KODEX SK Hynix Single-Stock Leveraged ETF,' fell to 1.2388 trillion won, down 65.8% from the previous day's 3.6254 trillion won. Similarly, 'KODEX Samsung Electronics Single-Stock Leveraged ETF' saw its trading value drop to 507.7 billion won, a 64.3% decline from 1.4236 trillion won the day before.
The trading direction of individual investors also shifted dramatically from net buying to net selling. On this day, individuals sold a net total of 1.0427 trillion won worth of the 14 ETFs. This contrasts sharply with the previous trading day, when individual investors had net bought 523.99 billion won worth of these funds.
The significant price increases of Samsung Electronics and SK Hynix, which rose by 26.81% and 29.95% respectively, likely prompted a wave of profit-taking in the single-stock leveraged ETFs. Among the individual stocks, 'KODEX SK Hynix Single-Stock Leveraged ETF' recorded the largest net selling at 591.5 billion won, followed by 'KODEX Samsung Electronics Single-Stock Leveraged ETF' at 200.6 billion won and 'TIGER SK Hynix Single-Stock Leveraged ETF' at 153.6 billion won. The single-stock leveraged ETFs based on SK Hynix closed with gains of 53% to 59%, while those based on Samsung Electronics rose by 48% to 53%.
Lee Sang-hyun, a researcher at Meritz Securities, noted, "Since the announcement of the supplementary measures, the growth rate of listed shares for single-stock leveraged ETFs has slowed, and trading turnover has noticeably decreased."
Starting from this day, financial authorities have raised the basic deposit for single-stock leveraged products from 10 million won to 30 million won. The basic deposit is recognized only in cash, and cash obtained from selling substitute securities will be acknowledged as a deposit starting from the T+2 day when it is actually deposited. This measure aims to prevent repetitive trading on the same day. There remains a possibility of further regulatory tightening, including additional increases in the deposit requirement. Financial Services Commission Chairman Lee Ok-kyung stated during a report to the National Assembly's Political Affairs Committee on July 29, "The 30 million won deposit requirement will take effect on July 31, and we will consider raising it further if necessary based on market conditions."
According to the Korea Exchange, the total trading volume for 14 single-stock leveraged ETFs, including those for Samsung Electronics and SK Hynix, was recorded at 244.01 million shares. This marks a 73.8% decrease compared to the previous trading day, which saw a volume of 932.98 million shares before the deposit increase. The trading value of the largest fund, 'KODEX SK Hynix Single-Stock Leveraged ETF,' fell to 1.2388 trillion won, down 65.8% from the previous day's 3.6254 trillion won. Similarly, 'KODEX Samsung Electronics Single-Stock Leveraged ETF' saw its trading value drop to 507.7 billion won, a 64.3% decline from 1.4236 trillion won the day before.
The trading direction of individual investors also shifted dramatically from net buying to net selling. On this day, individuals sold a net total of 1.0427 trillion won worth of the 14 ETFs. This contrasts sharply with the previous trading day, when individual investors had net bought 523.99 billion won worth of these funds.
The significant price increases of Samsung Electronics and SK Hynix, which rose by 26.81% and 29.95% respectively, likely prompted a wave of profit-taking in the single-stock leveraged ETFs. Among the individual stocks, 'KODEX SK Hynix Single-Stock Leveraged ETF' recorded the largest net selling at 591.5 billion won, followed by 'KODEX Samsung Electronics Single-Stock Leveraged ETF' at 200.6 billion won and 'TIGER SK Hynix Single-Stock Leveraged ETF' at 153.6 billion won. The single-stock leveraged ETFs based on SK Hynix closed with gains of 53% to 59%, while those based on Samsung Electronics rose by 48% to 53%.
Lee Sang-hyun, a researcher at Meritz Securities, noted, "Since the announcement of the supplementary measures, the growth rate of listed shares for single-stock leveraged ETFs has slowed, and trading turnover has noticeably decreased."
Starting from this day, financial authorities have raised the basic deposit for single-stock leveraged products from 10 million won to 30 million won. The basic deposit is recognized only in cash, and cash obtained from selling substitute securities will be acknowledged as a deposit starting from the T+2 day when it is actually deposited. This measure aims to prevent repetitive trading on the same day. There remains a possibility of further regulatory tightening, including additional increases in the deposit requirement. Financial Services Commission Chairman Lee Ok-kyung stated during a report to the National Assembly's Political Affairs Committee on July 29, "The 30 million won deposit requirement will take effect on July 31, and we will consider raising it further if necessary based on market conditions."
* This article has been translated by AI.
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