On July 13, Southern 2x Long SK Hynix (07709.HK) fell 17.49% in regular trading, trading at approximately HK$72.26 per share, with turnover of HK$1.145 billion.

The sharp decline was primarily triggered by SK Hynix plunging over 8% on the Seoul stock exchange, as investors engaged in aggressive profit-taking following the companys strong Nasdaq ADR debut last Friday. SK Hynix ADR surged 12.8% on its first day of US trading after pricing at $149 per share, raising over $26 billion. Market participants widely noted that foreign capital was rotating from Korean-listed shares into the US-listed ADR, creating significant selling pressure on the Seoul stock.

As a 2x daily leveraged ETF, the products built-in rebalancing mechanism amplified the underlying stocks decline, magnifying the loss to nearly double that of SK Hynix Korean shares. Additionally, UBS had previously recommended a strategy of buying SK Hynix ADR while selling the Korean-listed stock, citing lower holding costs and broader global access for ADR investors, which further contributed to arbitrage-driven outflows from the Korean listing.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)