SK Hynix's American Depositary Receipts (ADR) are trading at nearly a 25% premium compared to its domestic shares, highlighting the investment appeal of the company. The number of domestic active exchange-traded funds (ETFs) incorporating SK Hynix ADRs is also rapidly increasing, expanding the influx of investment capital from both domestic and international investors.
According to financial information service provider Yonhap Infomax, SK Hynix's ADR closed at $154.03 on July 17, up 1.13% from the previous trading day. Following a sharp decline of 13.69% the day before, a rebound in buying interest pushed the price up to $167.37 at one point during the day, a rise of 9.89%.
Although concerns over uncertainties surrounding the earnings reports of major U.S. tech companies and rising commodity prices due to military conflicts between the U.S. and Iran reduced the gains in the latter part of the trading session, the ADR maintained a premium of 24.60% compared to the domestic share price of 1,842,000 won.
Analysts are paying attention to the potential for the price gap between the ADR and domestic shares to lead to a reevaluation of domestic stock prices and improvements in supply and demand. Since the same company's stock is trading at a higher price in the U.S. market, it could enhance the investment appeal of the relatively cheaper domestic shares for global investors.
Meanwhile, the listing of SK Hynix ADR is also expanding new channels for incoming investment capital. According to ETF Check and the financial investment industry, as of July 16, there are a total of 11 domestic ETFs that have included SK Hynix ADRs. Asset management firms such as Asset Plus, Samsung Active, Time Portfolio, and Mirae Asset Global Investments have successively incorporated the ADR into their overseas stock ETFs following its listing.
The Asset Plus Global Top Companies Focus 10 Active ETF has the highest allocation, holding SK Hynix ADR at a 6.25% weight. The TIME Global AI Active ETF has an allocation of 3.25%, with an investment amount of 78.7 billion won, marking the largest scale. With the ADR listing, a direct investment path into SK Hynix through overseas ETFs has opened, which is expected to expand new investment demand and the supply and demand base both domestically and internationally.
* This article has been translated by AI.
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