ETF Abnormality | Technology market rebounds, South Korean stocks hit circuit breaker, CSOP KOSPI opens nearly 15% higher for double long positions in SK Hynix and Samsung Electronics
Complete. Here is the key summaryAffected by the rebound in the South Korean stock market and the counterattack of US stock AI hardware, the South China Morning Post's double long position on SK Hynix and Samsung Electronics ETFs collectively opened nearly 15% higher. Previously, the South Korean stock market triggered a circuit breaker due to the surge in KOSPI, leading to a significant rise in the stock prices of SK Hynix and Samsung Electronics. Microsoft's earnings report boosted confidence in AI, combined with the cooling of US PCE inflation and the nearing end of hedge fund deleveraging, which reduced market selling pressure. Strong demand for memory chips has driven a surge in Samsung's profits, boosting investor sentiment
According to Zhitong Finance APP, the double long Korean stock "storage duo" collectively opened higher. As of the time of publication, Southern Double Long Hynix (07709) rose 14.98% to HKD 29.16; Southern Double Long Samsung Electronics (07747) rose 14.99% to HKD 59.68.
On the news front, on July 31, the Korean stock market rebounded strongly, reaching a circuit breaker, with the KOSPI index soaring by 15% at one point. SK Hynix's gains expanded to 29%, and Samsung Electronics rose over 25%. The cooling of U.S. core PCE inflation has reduced short-term interest rate hike expectations. Additionally, Microsoft's better-than-expected earnings report has reshaped confidence in AI investments, coupled with the end of selling pressure from the previous liquidation of large AI funds. Overnight, U.S. stocks in AI hardware staged an epic counterattack, with the Philadelphia Semiconductor Index soaring over 8%, marking the largest single-day gain since April 2025, with chip stocks like Micron Technology, SanDisk, and AMD all rising sharply.
Regulatory filing documents show that SK Group Chairman Chey Tae-won purchased 3,620 shares of SK Hynix to boost market confidence. Samsung's second-quarter earnings report indicated that strong demand for AI continues to drive growth in the memory chip business, with the company's revenue and profit both significantly increasing, including an operating profit that surged 1,814% year-on-year, setting a new historical high. JP Morgan's Prime account data shows that the long-short ratio in the Korean market has significantly decreased from high levels. The bank assesses that the deleveraging process of hedge funds is about 90% complete, and the space for continued concentrated selling has clearly narrowed