After the new regulation, South Korean retail investors turned into monthly net buyers of leveraged ETF, betting on a rebound in chip stocks for the first time.

Glonghui, October 25｜For the first time since the tightening of investment regulations at the end of July, Korean retail investors have recorded a net monthly purchase of single-stock leveraged ETFs. Amid a sharp decline in the Korean stock market, demand has surged again to bet on a rebound of major chip companies such as Samsung Electronics and SK Hynix. According to data from the Korea Exchange on the 25th, from the 1st to the 23rd of this month, individual investors have recorded a net purchase of 14 single-stock leveraged ETFs linked to Samsung Electronics and SK Hynix, with a total amount of 315.4 billion won (equivalent to $221 million). Of these, seven SK Hynix-related products saw net purchases totaling 226.3 billion won, while seven Samsung Electronics-related products recorded net purchases of 89.1 billion won.This is the first time since the implementation of the new regulatory rules at the end of July that retail investors have returned to net buying on a monthly basis. In July, retail investors had a net purchase of these 14 single-stock leveraged ETFs amounting to 2.77 trillion won; after the regulatory authorities raised minimum margin and other requirements on July 31, retail investors turned net sellers, with net sales of 648.4 billion won in August and 497.9 billion won in September, before returning to net buying this month.