The Korean diaspora bought Samsung and Sky Hercules single-leverage ETF before the regulatory tightening

On 26 July, the data showed that South Korean diasporas had bought 14 single-stock leverage ETFs on 24 days and about 450 billion won a day. Prior to this, the Korean diaspora had accumulated net sales of about 500 billion won for three consecutive days. According to data from the Korea Exchange and Koscom Check, as at 26 July, the bulk investors had sold 14 leverage products for three consecutive days, from 21 to 23 July, with a cumulative net sale of 547,171.38 billion won. This trend was reversed on 24 July. In just one day, individual investors bought seven three-star single-leverage items, amounting to 103,895.9 million won, and seven SK Helix single-leverage items, amounting to 350,268.8 million won. It is worth noting that this net buy-in took place on “Black Friday”, when the KOSPI index fell by more than 5 per cent and the three-star electronics and SK Hercules collected a 7-8 per cent drop. As a result, single-stock leverage ETFs, based on the shares of the two companies, also fell by 15 to 16 per cent. The analysis found that the sharp fall in single-equity ETF prices attracted some investors to low-purchase. In addition, as the new rules for raising the minimum security requirement are to be implemented from 31st day, some individual investors may wish to increase their silos by “amortizing” them before regulations tighten, thus contributing to the demand。