Samsung, SK hynix Rebound Sharply as KOSPI Reclaims 7,200

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an "AI-based personalized news recommendation and summary service" developed with support from the Korea Press Foundation. It selects and provides six customized news items by reader type.

1. "Hynix ADR and U.S. CPI Tailwinds" Lift All the Way to No. 32 in Market Cap

- Key Summary: Samsung Electronics and SK hynix surged, bringing the KOSPI back above 7,200 for the first time in three trading sessions. The KOSPI closed at 7,284.41, up 427.58 points (6.24%) from the previous session, and a buy sidecar was triggered just six minutes after the open. The result came after SK hynix's ADRs rose 27% overnight, followed by a slowdown in the U.S. CPI growth rate and ASML's surprise second-quarter earnings adding to semiconductor tailwinds. However, the securities industry forecast that the second-quarter earnings of U.S. Big Tech and whether foreign investor flows recover will be key variables for the market going forward.

2. President Lee Jae-myung: "Prepare Leverage ETF Remedies Swiftly"

- Key Summary: President Lee Jae-myung ordered the preparation of remedial measures for single-stock leverage ETFs tied to Samsung Electronics and SK hynix. The move follows a sharp rise in market volatility and increasing investor losses since 16 single-stock leverage products were launched on May 27. Along with this, the Financial Services Commission decided to expand the size of the National Growth Fund from 150 trillion won to 200 trillion won and to provide long-term funding to three mega projects: semiconductors, AI data centers (AIDC), and physical AI. It also decided to extend the period for reflecting performance-based pay in calculating the debt service ratio (DSR) from two years to three years to curb sharp increases in loan limits.

3. Dollar Lending "Reverse Premium" Widens…"Exchange Rate to Plunge When Hynix ADR Funds Flood In"

- Key Summary: The dollar premium, the spread added when borrowing dollars in the foreign currency funding market, has fallen into negative territory, indicating a market flush with dollars. According to the Bank of Korea, the three-month dollar premium stood at -0.3 percentage points on the 14th, far below the recent five-year average (0.34 percentage points). An increase in corporate foreign currency deposits and expanded foreign investment in domestic bonds are cited as factors that boosted dollar inflows. However, some forecast that the exchange rate could fall further if SK hynix converts the 40 trillion won raised through its ADR listing into won.

4. Export Boom Dimmed by Domestic Slump…China's Q2 Growth Hits 3-Year Low

- Key Summary: China's second-quarter economic growth slowed to its lowest level since 2022. According to the National Bureau of Statistics of China, second-quarter gross domestic product (GDP) rose 4.3% year-on-year, sharply lower than the first quarter (5.0%). With investment, which accounts for about 40% of total GDP, contracting, real estate development investment fell 18.0% year-on-year, marking the largest decline since 1992. However, exports of advanced manufacturing such as semiconductors and electric vehicles showed strength, partially offsetting the growth slowdown.

5. ASML Revenue at 16 Trillion Won…Another "Surprise Earnings" in Q2

- Key Summary: The Netherlands' ASML reported better-than-expected second-quarter earnings and sharply raised its annual revenue outlook. ASML's second-quarter revenue was 9.326 billion euros (about 16 trillion won), up 6.4% from the previous quarter and well above the market research firm LSEG's forecast (8.8 billion euros). Sales of new lithography equipment reached 86 units, up 28.4% from the previous quarter (67 units), and the annual revenue outlook for this year was raised from the previous 36 billion to 40 billion euros to 43 billion to 45 billion euros. Meanwhile, ASML said Intel has entered mass production using High NA EUV (high numerical aperture extreme ultraviolet lithography equipment), confirming that preparations for commercialization are complete.

6. Single-Stock Leverage ETF Regulation Countdown…Must Not Repeat Derivatives Market Contraction

- Key Summary: As criticism continues that single-stock leverage ETFs tied to Samsung Electronics and SK hynix are increasing market volatility, discussions on institutional improvement are getting underway in earnest. Financial authorities take the position that regulatory adjustments are needed because hedge trading can increase spot market volatility, but the industry worries that excessive regulation could repeat the pattern that shrank the derivatives market after 2012. In fact, following the increase in contract multipliers in 2012 and the raising of the base deposit in 2014, trading volume plummeted, and by 2016 it had fallen out of the world's top 10. Accordingly, finding a balance between investor protection and capital market competitiveness is expected to determine the future direction of the derivatives market.