South Korea's KOSPI Index Surges Nearly 10% in Two Days, Leveraged ETF De-Leveraging Approximately 75% Complete

Odaily Planet Daily News South Korea's KOSPI Index rose as much as 6.2% during Wednesday's trading session, with a cumulative increase of nearly 10% over the past two trading days. Among individual stocks, SK Hynix once surged over 9%, Samsung Electronics rose more than 6%, and chip stocks led the market rally.

A recent report from JPMorgan indicates that the de-leveraging process for South Korea's leveraged ETF positions is approximately 75% complete. According to data from the Korea Financial Investment Association, as of July 16, the balance of margin financing in South Korea had fallen to 33.4 trillion won (approximately $22.6 billion), down 13% from its peak at the end of June.

Furthermore, as of Wednesday morning, foreign investors have made net purchases of South Korean stocks exceeding $1 billion, marking the first large-scale inflow in about a month. (Bloomberg)