Serenity: SK Hynix ADR trades at 25% premium over Korean shares, conversion opens on July 29, may depress US stock price

Odaily reported that "White-Haired Stock God" Serenity posted on X platform, stating that currently SK Hynix American Depositary Receipts (ADR) $SKHY trade at over a 25% premium compared to the company's domestic Korean shares. The conversion mechanism between the ADR and Korean stocks will officially open on July 29, which may create opportunities for market arbitrage trading and push the price gap between the two markets to narrow.

Serenity pointed out that currently only about 2.5% of SK Hynix's shares are circulating as US ADRs, with an additional approximately 22.5% of shares having potential for conversion. As the conversion channel opens, arbitrage capital may profit by buying domestic Korean shares and converting them into ADRs, thereby driving up Korean stock prices or putting pressure on the US ADR prices.