The Korea Exchange (KRX) reported net purchases of ETFs worth 593.7 billion won, concentrated on products linked to indices. The figures cover transactions made up until Wednesday. Inverse trading activity was widespread throughout the period examined.

According to the KRX, foreigners closed as net sellers on the main market in eight out of twelve considered sessions. Friday's session remained closed for Constitution Day; no subsequent session occurred due to lack of data from operator reports. Behavior differed in the exchange-traded fund segment.

Net buyers of ETFs were seen by operators at 593.7 billion won al netto cessiones, with positive balances in ten out of twelve sessions. Amount was much lower than direct sales registered on two markets' shares. It signals persistent interest towards instruments allowing diversified exposures or constructed according rules pre-stable.

KODEX Leverage resulted most acquired ETF by foreign investors, with a net balance of 195 billion won. Product follows double performance daily of Korea Composite Stock Price Index, KOSPI index of reference coreanese market. Leverage amplifies quotidian movement of index, whether rising or falling.

Second place held by KODEX 200, with 180.6 billion won. Also this fund is connected to principal Korean stock market. Flows into KODEX Leverage and KCODEX 200 show concentration of interest on products related general indexes whereas opposite view taken some ETF built upon single company’s trend.

Le Cessions have particularly concerned SK hynix. Foreign investors sold ETFs worth 79 billion won managed by Samsung Asset Management and 46.4 billion won corresponding product Mirae Asset Global Investments. Report does not indicate motivations behind individual operations nor specifies if sales determined by coordinated choices or autonomous decisions of various operators.

Un observer from the Korea Times has attributed distribution of investments between different ETFs all need for risk reduction in portfolios instead of unique directional bets on Korean bourse. Evaluation constitutes external interpretation of flows: source reports no declarations from foreign investors neither elements that would allow establishing common motivation. Passage from shares to ETFs did not imply abandonment of exposure to coreanese market either.

Part of acquisitions interested funds replicating national indices including one product a leva. Data describes therefore re-composition of instruments used but doesn’t permit quantifying comprehensive risk assumed by investors nor reconstructing entire possible coverage strategies. I movements insert itself comparison on rules applicable to ETFs a leva whereas Corea del Sud undergoes according to source, phase of major volatilitiy.

Last week government presented series of interventions dedicated these products. Mentioned measures concern mainly strumenti moltiplicando daily movement share of single enterprise. Tra novità annunciate figura l’augmento deposito minimo richiesto agli investitori su singoli titoli.

Soglia passerà dagli attuali 10 milioni won a 30 milioni. Government also indicated that these products can be negotiated in lots of 20 quotes. Source does not specify when disposizioni enter vigore neither illustrates ulteriori provvedimenti compresi pacchetto.

Le prossime sedute consentiranno di verificare se separazione tra vendite azione e acquisti ETF proseguirà oltre periodo osservato. Restano da chiarire anche effetti nuove regole sui volumi sull’accesso prodotti a leva legati singola società. I data diffusi finora dalla KRX fotografano soltanto flussi maturati dall’inizio mese fino giovedì.