2,000 Apply for "Single Stock Leverage" Pre-Trade Education on First Day... Asset Managers Also Ready

1,654 Participants Complete First Day of One-Hour Course
Asset Managers Prepare for May 22 Listing

The Korea Financial Investment Association's Korea Institute of Financial Investment Education saw approximately 2,000 participants enroll on the first day of the newly opened online course, “Pre-Trade Education for Single Stock Leveraged·Inverse Listed Products,” which was launched the previous day. Asset management companies are mostly preparing for the listing of double-leverage products focused on Samsung Electronics and SK hynix, with the listing scheduled for May 22.

According to the Korea Financial Investment Association on April 29, there were 2,056 applicants and 1,654 completions on the first day of the pre-trade education course for trading single stock leveraged·inverse listed ETPs (such as ETFs and ETNs). To invest in newly listed domestic and overseas single stock leveraged·inverse ETPs scheduled for listing on May 22, investors are required to complete this one-hour course. If investors already have experience trading domestic or overseas leveraged ETPs, or have completed the existing domestic and international leveraged ETP guide course, only this one-hour session is required.

If investors have no previous experience trading domestic or overseas leveraged ETPs and have not completed the existing leveraged ETP guide course, they must complete both the one-hour domestic and international leveraged ETP guide course and the one-hour pre-trade education for single stock leveraged listed products, for a total of two hours of integrated education.

Previously, the popularity of the leveraged ETP education was already proven earlier this year, as the number of completions surpassed last year’s figure of 205,403. According to ETFCheck, on April 27, the product with the largest net capital inflow in the domestic stock market was KODEX Leverage (266 billion won).

Asset management companies are sequentially completing preparations, starting with submitting preliminary review applications to the Korea Exchange, in line with the listing schedule. If there are no issues after the preliminary review by the Korea Exchange, a formal listing review is requested, after which a securities registration statement is submitted to the Financial Supervisory Service, leading to the official listing. It is known that most asset management companies have applied for “double leverage” products for the two stocks, Samsung Electronics and SK hynix, in accordance with regulatory standards. Some asset management companies plan to introduce not only double leverage products but also “double inverse” (geopbus) products for differentiation. An official at one asset management company stated, “Most single stock leveraged ETFs will be launched on May 22, in line with the Korea Exchange’s general guidelines.”

Interest from domestic investors in single stock leveraged ETFs listed on the Hong Kong Stock Exchange has also remained steady. According to Korea Securities Depository’s Safe+ service, as of April 24, the holdings of the Hynix double leverage ETF (XL2CSOPHYNIX) stood at 104.78 million dollars (approximately 154.45619 billion won), ranking 7th among Hong Kong market holdings by domestic investors. The Samsung Electronics double leverage ETF (XL2CSOPSMSN) was ranked 10th, with holdings of 74.11 million dollars (approximately 109.2633 billion won).

Oh Kwangyoung, a researcher at Shin Young Securities, stated, “Although only two stocks are currently permitted, making it impossible to list a wide variety of single stock leveraged ETFs for now, the introduction of single stock leveraged ETFs is definitely a positive change for investors as it broadens the range of product choices.”

Yeom Dongchan, a researcher at Korea Investment & Securities, said, “Once single stock leveraged ETFs are listed, demand for individual stock futures buying will increase. Since SK hynix’s futures contract value is relatively higher compared to its spot trading value than that of Samsung Electronics, the increase in futures demand will be more positive for SK hynix.”

This content was produced with the assistance of AI translation services.