@meanmatch
On May 22, South Korea did something remarkable. 8 asset managers launched sixteen leveraged ETFs on the same day. The products were built around just two companies: Samsung Electronics and SK Hynix. While the launch itself was unusual, the real story is why it happened.
For years, South Korea prohibited single-stock leveraged ETFs even as investors found ways to buy them abroad. Before a domestic 2x SK Hynix ETF even existed, a Hong Kong-listed version had already attracted more than $5 billion in assets. A significant share of those buyers were reportedly Korean retail investors who were routing their money through Hong Kong to gain leveraged exposure to one of Korea's own flagship companies.
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