South Korea ETF Chief Warns Against Forced Delisting of Leveraged Single-Stock Products

Pei Zaigui advises against forced delisting of leveraged Samsung and SK Hynix products, citing value erosion from daily rebalancing. He urges broad semiconductor chain investment over single-stock concentration.

Woofun AI reports that Pei Zaigui, CEO of a South Korean investment firm, stated that leveraged single-stock products tracking Samsung Electronics and SK Hynix should exit the market naturally rather than face forced delisting. He emphasized that the optimal strategy for such instruments is non-investment due to risks associated with daily rebalancing and compounding effects during high volatility.

Pei Zaigui noted that the storage chip sector remains highly cyclical, with Samsung, SK Hynix, and Micron Technology expanding investments amid intensifying regional competition. He advised investors to allocate capital across the entire semiconductor industry chain instead of concentrating on individual manufacturers, focusing on long-term growth prospects driven by AI demand rather than short-term price fluctuations.