MOO: KOREA'S LEVERAGE ETF IS CLOSING IN

On 29 July, Chase Morgan stated that the large-scale deleveraging experienced by the Korean stock market since mid-June had shown that the leverage ETF silo had largely been completed, hedge funds had completed approximately 90 per cent of the deleveraging process and the leverage level had fallen back to a more reasonable level. Mixo Das, a Morgan Chase strategist, et al., wrote in their report that, taken together, the current position of the Korean stock market has become attractive, while undervalued and profitable growth has been positive. “The scale of such funds has now fallen to $17 billion as the market rebounds”, reports that the previous momentum of rapid capital inflows to the ETF has slowed markedly in recent days. However, the recent collapse in equity prices may trigger further deleveraging in the coming days. At the same time, many investors remain cautious, taking into account the risk of interest-rate hikes at meetings of the Federal Reserve’s Open Market Committee and the high expectations placed by the market on the forthcoming financial statements of megatech companies。