South Korea's Central Bank Warns Single-Stock Leveraged ETFs Deepen Market Concentration to 55.3% on July 5

According to written responses submitted to a lawmaker on July 5, South Korea's central bank warned that single-stock leveraged ETFs for Samsung Electronics and SK Hynix risk deepening market concentration and expanding stock price volatility. The two companies' market capitalization share in the stock exchange surged from 36.1% at year-end to 55.3% as of June 24, while their trading volume share jumped from 27.9% to 63.5%. The central bank stated that leveraged ETF investments could amplify one-directional trading flows and increase individual investors' losses during price corrections. The central bank plans to strengthen monitoring and work closely with relevant authorities to address these risks.
Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.
Comment
0/400
No comments