SK hynix headquarters in Icheon, Gyeonggi Province / Yonhap
Buyers holding SK hynix shares are expressing frustration over the Korea Change’s (KRX) choice to put the unreal intelligence (AI) chip maker below an “funding warning”, a measure that triggered sharp losses, market watchers stated Friday.
Many say the bourse operator’s unreasonable regulatory precedence is out of sync with the Lee Jae Myung administration’s drive to push the KOSPI to five,000 factors, accelerating a retail investor exodus from Korea to the U.S. fairness market.
The say the collective stance is justified, for the reason that “warning” is to curb small-cap shares liable to short-term manipulation, not large-cap shares main the nation’s monthslong synthetic intelligence (AI) rally with strong efficiency and earnings outlook.
Based on the KRX, SK hynix shares had been positioned below a warning on Thursday as a result of its value closed greater than 200 % larger than a yr in the past, posting the best closing value previously 15 buying and selling days.
This led to buyers being banned from growing holdings by means of inventory or margin loans. Additional value spikes might immediate a full buying and selling halt.
The warning instantly led to about 4 % value drop to decrease than 570,000 received ($386), regardless of general world fairness markets buoyed by the U.S. Fed’s financial easing.
Lee Ha-won, 40, a SK hynix shareholder, stated the KRX measure is precisely why retail buyers are leaving Korea.
“They simply don’t get it. They in all probability by no means will. That’s the unhappy half,” she stated.
The Lee administration has been adamant that the chronically undervalued KOSPI would bounce to the 5,000-point milestone, however the nation’s main AI share being hamstrung by what she considers administrative incompetence is simply proof why Korea remains to be the place it’s, she stated.
“I considered shopping for U.S. tech shares however went with SK hynix shares, anticipating that the earnings outlook would stay robust all through subsequent yr. I’m simply discovering it ironic that the federal government is selling home inventory funding, whereas nonetheless unable to know what’s mistaken,” she stated. “The warning needs to be about eradicating inventory value manipulation, not suppressing development shares accounting for 10 % of KOSPI market cap from rising to the place they need to be.”
SK hynix shares closed at 571,000 received on Friday, up 1.06 % from the earlier session.
The KRX stated the associated rules will probably be revised.
