South Korea Moves To Rein In Risky ETF Trading Amid Market Turmoil
South Korea's top financial officials have apologized over the launch of single-stock leveraged ETFs, which are being blamed for sharp swings in the Kospi. Regulators plan to cap high-risk investments at 20% of investors' total portfolios and have banned new risky ETF listings and advertisements, as the Kospi has fallen more than 40% from its June peak.
Seoul Confronts Market Turmoil
REPORTER:
South Korea is moving to tame an investment frenzy as sharp swings rattle the stock market.
Top financial officials apologized over the launch of single-stock leveraged Exchange-Traded Funds or ETFs. ETFs primarily tied to tech firms Samsung or SK Hynix are being blamed for recent intense selloffs in the Kospi. Authorities are now seeking to cap high-risk investments to 20 percent of investors’ total portfolio along with other trading limits. New risky ETF listings and ads have been banned. The Kospi has sank more than 40 percent from its June peak.
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South Korea Tames Investment Frenzy
REPORTER:
The South Korean government is moving to tame an investment frenzy as sharp swings rattle the stock market.
Top financial officials apologized over the launch of a single-stock leveraged exchanged traded fund, a risky product blamed for intensifying selloffs in the Kospi. Authorities are capping high-risk investments to 20 percent of investors’ total portfolio and other trading requirements. New risky ETF listings and ads have been banned, as the Kospi sank more than 40 percent from its June peak.
