Image: Financial PostKorean Stocks Tumble as AI Trades Unwind, Threatening Bull Run
• South Korean stocks experienced a significant plunge as investors began unwinding artificial intelligence trades that had previously driven a global bull market. • The volatility is partly attributed to the popularity of leveraged ETFs tracking chipmakers, such as CSOP’s SK Hynix fund in Hong Kong, which is now the world's largest single-stock leveraged ETF. • Frequent intraday swings of 5% or more are occurring due to the complex rebalancing trades required for these leveraged financial products.
financialpost.com
