The new leverage regulation policy in South Korea has forced retail investors to invest in overseas ETFs, and the Southern Double Long ETF has seen consecutive days of high volume According to BlockBeats, on August 7th, one week after the implementation of regulatory measures for single stock leverage and reverse ETFs in South Korea, the trading heat of related products significantly cooled down, with trading volumes below 1 trillion Korean won for two consecutive trading days. According to data from the Korea Exchange (KRX), on August 7th, the total trading volume of 16 single stock leveraged and reverse ETFs in the Korean market was 941.2 billion Korean won, falling below 1 trillion Korean won for the second consecutive trading day, following the previous trading day's 919.8 billion Korean won. The market believes that the decrease in transaction volume is mainly affected by the new regulatory measures implemented from July 31st. The new regulations have raised the funding threshold for individual ordinary investors to participate in single stock leveraged ETFs, increasing the basic margin requirement from KRW 10 million to KRW 30 million in cash. However, South Korean securities institutions have pointed out that investment demand has not completely disappeared, but rather there has been a "regulatory arbitrage" or "balloon effect" shifting towards semiconductor leveraged ETFs and overseas listed leveraged products. South Korean investment securities researcher Jung Hyun jong stated that after regulatory implementation, the trading volume of individual stock leveraged ETFs has decreased, but the trading volume of semiconductor leveraged ETFs has increased, indicating that some funds are shifting towards alternative products, and overseas market related products may also become targets for capital flow. Zheng Xianzong pointed out that due to the fact that overseas listed ETFs are not subject to domestic regulatory restrictions in South Korea, investors may turn to overseas single stock leveraged ETFs. Among them, the CSOP SK Hynix Daily (2x) Leveraged Product, which is listed in Hong Kong, is currently one of the largest single stock leveraged ETFs in the world in terms of market value. Relying solely on domestic regulatory measures in South Korea is difficult to completely suppress investors' demand for semiconductor cycles and high leverage strategies, and the long-term effects of regulation still need to be continuously observed. (Daum) [Original link]