SKHY

Key Operations for Next Week

On Monday, July 13, SKHYV will switch to the regular trading symbol SKHY, marking the first key milestone. The symbol change signifies that trading access will officially open for more retail brokerages, further enhancing liquidity. On the same day, the 2x leveraged long ETF (SKHU) issued by ProShares and the 2x leveraged product (SKHL) from Direxion will also begin trading.

On Tuesday, July 14, the settlement date for the first batch of SKHYV trades will be completed. The actual positions of some short-term profit-taking trades will be cleared and settled during this period, creating a potential window for the release of short-term selling pressure.

On Wednesday, July 15, the FX settlement for the $26.5 billion fundraising will be completed. This massive amount of US dollars will be converted to Korean won and flow back to South Korea. This capital movement will support the Korean won exchange rate and the KOSPI index, but it also means an increase in US dollar liquidity supply in the Korean market.

In late July, the component adjustment window for the Philadelphia Semiconductor Index (SOX) is about to open. The probability of SK hynix ADR being included in the SOX is extremely high, which will trigger passive allocation by mainstream semiconductor ETFs like SMH and SOXX. UBS estimates that inclusion in the MVIS Semiconductor 25 Index alone will bring about $3.5 billion in passive fund inflows, and cumulative passive funds could reach $15 billion after long-term inclusion in the Nasdaq-100 Index.

On Tuesday, July 29, 17.79 million shares of new Korean stock will officially be listed and become tradable on the Korea Exchange, marking the final key milestone for next week. The new supply will create short-term pressure on the Korean parent stock, and the premium between the ADR and the Korean stock may also narrow as a result.