PANews reported on January 16 that major South Korean stock exchanges are in discussions with financial regulators to consider easing restrictions on high-risk leveraged exchange-traded products (ETPs). Despite a historic surge in the domestic stock market, retail investor funds have failed to flow back to the country. According to the CEO of the Korea Exchange, the exchange is studying a gradual relaxation of restrictions, which currently prohibit high-risk products such as leveraged single-stock ETFs and funds offering three times or more leverage on indices. This move highlights South Korea's predicament: despite the benchmark Kospi index surging 92% over the past year, investors continue to favor the US market. Regulators point out that a significant reason for the weakening of the local currency is the large outflow of domestic retail funds into the US stock market.
The Korea Exchange is considering launching riskier ETFs to attract retail investors.
Share to:
Author: PA一线
This content is for informational purposes only and does not constitute investment advice.
Follow PANews official accounts, navigate bull and bear markets together
Recommended Reading
