Asian Margin Debt Tumbles $67 Billion From Peaks, Leveraged ETFs Sink
Combined margin debt in South Korea, China and Taiwan has dropped by $67 billion from recent highs. South Korean leveraged ETFs linked to Samsung and SK Hynix have lost 63% of assets since June.
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- South Korea's margin debt declined $4 billion from its June peak to $22 billion, the lowest since mid-April.
- China's stock margin loans dropped $59 billion to $385 billion, the lowest since the second week of April.
- Taiwan's margin debt fell $4 billion from its July peak to $15 billion, the lowest since mid-May.
The combined $67 billion reversal in margin debt underscores a rapid unwinding of leverage across Asian markets.
Adding to the pressure, South Korea-listed leveraged ETFs tracking SK Hynix and Samsung have seen assets plunge 63% – a $7 billion decline – to just $4 billion.
Source: The Kobeissi Letter