South Korean stocks swing sharply
China Merchants Securities has withdrawn from the only ETF in China that focuses on South Korean stocks, due to sharp fluctuations in the Seoul Stock Exchange which increased the risks of liquidity provision for the fund. This followed the company's decision, which had acted as market maker since June 17, to halt buy and sell orders, leading to reduced liquidity and a widening gap between the fund's price and its net asset value. This move reflects a decline in investor confidence, as the KOSPI index continues to fall from a record high of 118% to its lowest level in a month, impacted by widespread sell-offs and sharp volatility in major stocks such as Samsung and SK Hynix, which were heavily reliant on demand in the artificial intelligence and memory chip sectors.
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