I found that many friends said they couldn't understand, so let me explain in plain language.

Before today, the semiconductor company SK Hynix, which has been listed in South Korea, is going to be listed in the United States, and this process is done through ADR issuance (I will use ADR as an abbreviation below), which can be simply understood as packaging stocks from other countries into stocks that meet U.S. listing standards.

So there will be a situation where a stock is listed in both South Korea and the United States. This kind of thing has also happened in China, for example with China National Petroleum, and of course China's ADR is H Shares, not A Shares.

Returning to SK Hynix, because there is a time difference between South Korea and the United States, friends are asking whether the same stock will have price differences between South Korea and the United States, and if there is a price difference, whether it will be based on the U.S. or South Korea.

This is actually an arbitrage logic. For example, if the price in South Korea is $100 (100 USD worth of Korean won), and in the U.S. it is $80 (or $120), then will South Korea drop to $80, or will the U.S. rise to $100? This is the question friends are asking.

My answer is that currently, it is quite popular, and the U.S. tends to have higher premiums, meaning if the price in South Korea is $100, it might have risen to $120 in the U.S. This kind of premium emotion is likely to amplify or shrink with the degree of FOMO, but generally speaking, this premium might last for a while.

To put it plainly, if South Korea closes at $80 today, the U.S. stock might be $100 tomorrow, and South Korea might close at $90 tomorrow, while the U.S. might be $110. This type of sustained premium is related to time and the degree of FOMO.

But after a period of stabilization, according to historical experience, the price of the South Korean stock market tends to become the benchmark price. This means that if South Korea rises, the U.S. also rises, and if South Korea falls, the U.S. also falls. This is more likely to occur after stabilization, not at the very beginning.

I gave an example of SpaceX, which also experienced a lot of FOMO when it just opened. The SK Hynix ADR may also experience a similar emotional process. The difference is that SK Hynix has the South Korean stock as a reference, so the faster the U.S. rises, the more obvious the premium between it and the South Korean stock will be.

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