--- type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/42666939.md" description: "$SK Hynix(SKHY.US) The pre-listing strategy for SK Hynix's US stock issued by UBS, Goldman Sachs, and Bank of America earlier: long the US stock SKHY ADR + short the Korean local stock, a cross-market arbitrage strategy by institutions.It's a short-term arbitrage behavior, it won't last long, right? Global institutions long the US stock Hynix and short the Korean stock Hynix to hedge risks, arbitrage trading? Even though the US stock already has a 40% premium rate relative to the Korean stock, influenced by the heat of the US stock options first day and double skuu, it surged tonight, further premium upwards would be ridiculous... Referencing TSMC's 16%, Hynix's 20% is reasonable.This situation won't persist forever. The Southern Double Long Hynix ETF chasing the rise in Korean stocks will probably also rise tomorrow, hoping to slowly recover above 100😂$XL2CSOPHYNIX(07709.HK)Previous news is for reference only:1. UBS: Buy SK Hynix US ADR! Sell Korean Stock![Clear logic: ADR holding costs are lower, global access is wider, and potential restrictions in the share swap mechanism may cause the premium to persist long-term—TSMC's ADR still trades at a 16% premium to its Taiwan-listed shares is a precedent. "Going long the depositary receipt and short the local stock from day one sounds like a no-brainer," and emphasized "Given the extremely low probability of the ADR trading at a discount, the actual risk exposure of this trade is very limited, and the scale can be substantial."]2. Strategy Recommendation: Buy ADR, Sell Korean Stock[Strategy Core: UBS Group recommends investors buy the upcoming ADR of SK Hynix (SKHY), while selling its Korean-listed stock (000660.KS).UBS's core logic: ADR is expected to have a premium: UBS believes the ADR may trade at a premium, meaning the US ADR price could be higher than the converted Korean stock price. More efficient and lower cost to hold: For investors like hedge funds, ADRs are more attractive than Korean stocks.Risk is very limited: UBS noted in the report, "Going long its ADR and short its Korean stock from day one sounds like there's nothing to hesitate about. Given the discount phenomenon of ADRs is unlikely to occur, the risk is very limited, so this is a trade that can be executed on an extremely large scale."Conversion restrictions may further push up the premium: UBS also mentioned that if investors need approval from Korean regulators to convert Korean shares to ADRs, it could lead to ordinary shares not being freely convertible to ADRs, which would directly push up the US ADR price, causing a significant and sustained premium relative to Korean shares.]3. How to Execute This Strategy[Suitable Investor Types UBS pointed out this strategy is particularly suitable for:Institutional investors like hedge fundsGlobal portfolio managers not yet holding Korean stocksGlobal retail investorsExecution MethodLong ADR (Buy SKHY):During Nasdaq's normal trading hours (ET 9:30-16:00), directly buy the ADR with ticker SKHY through a US brokerage account.Short Korean Stock (Sell 000660.KS):Requires a broker qualified for Korean stock trading to operate during Korean exchange hours or use derivative instruments for shorting.UBS emphasized this is a "trade that can be executed on an extremely large scale," suitable for investors with substantial capital.]" datetime: "2026-07-14T17:52:27.000Z" locales: - [en](https://longbridge.com/en/topics/42666939.md) - [zh-CN](https://longbridge.com/zh-CN/topics/42666939.md) - [zh-HK](https://longbridge.com/zh-HK/topics/42666939.md) author: "[陆羽鸿渐](https://longbridge.com/en/profiles/13552510.md)" --- # $SK Hynix(SKHY.US) The pre-listing strategy for SK… ### Related Stocks - [SKHY.US](https://longbridge.com/en/quote/SKHY.US.md) - [07709.HK](https://longbridge.com/en/quote/07709.HK.md) - [SKHYV.US](https://longbridge.com/en/quote/SKHYV.US.md) ## Comments (8) - **陆羽鸿渐 · 2026-07-14T19:11:00.000Z**: It can't be like this for long... - **長野原烟花店交易员 · 2026-07-14T18:20:15.000Z**: God-like logic - **陆羽鸿渐** (2026-07-14T18:39:13.000Z): It wasn't my post, UBS issued a recommendation on the first day of listing to go long on US ADRs and short Korean stocks. I'm just worried that with the US market rising so much tonight, the Korean ma - **不想上班又想有钱 · 2026-07-14T18:15:39.000Z · 👍 1**: Today is the first day of skuu, and it has a similar impact on the underlying stock as 07709 did back then. - **陆羽鸿渐** (2026-07-14T18:41:27.000Z): Got it. The enthusiasm from Hynix's options trading on the US market and the first day of SKUU's 2x leveraged long ETF, in short, anything that can boost the Korean stock market is good news. I've bee - **锦鲤少女kiki · 2026-07-14T18:02:11.000Z · 👍 1**: There are still two more rounds of selling pressure at 15 and 16. - **陆羽鸿渐** (2026-07-14T19:06:59.000Z): KTV is just another day. Now it depends on whether the Korean stock market can get out of the ICU, and whether it can surge tomorrow. The 2x long South Korea Hynix ETF hasn't been unwound yet 🥹 - **在学习中前进** (2026-07-15T00:55:39.000Z): How to put it?