Samsung Electronics, SK Hynix dominate South Korea AI leveraged ETFs
South Korea's stock market is getting pretty wild lately, thanks to a rush of speculative trading in AI-themed leveraged products.
ETFs focused on Samsung Electronics and SK Hynix are dominating the action, with both companies now making up more than half of the KOSPI index.
Despite all the hype around AI tech, their share prices are still low compared to earnings.
Regulators pause leveraged single-stock ETF approvals
Retail investors are driving much of this frenzy, holding margin loans close to record highs at $23 billion as they chase big returns from these AI-focused products.
To calm things down, regulators have paused new approvals for leveraged single-stock ETFs and will raise the minimum cash requirement for trading them, hoping to keep speculation in check without shaking up the market too much.