Wall Street Banks to Limit Hedge Funds' Long Leverage on Asian Chip Stocks like SK Hynix and Samsung

BlockBeats News, June 12, according to Bloomberg, sources revealed that global banks are restricting hedge funds' leverage bets on top Asian chipmakers (including SK Hynix and Samsung Electronics), amid concerns of a potential pullback following this year's sharp rally.

Sources said brokers including Citigroup, JPMorgan, and Goldman Sachs have raised the financing costs for hedge funds to bet on SK Hynix and Samsung Electronics stocks through derivatives. Banks have tightened the size of new trades and which firms they will deal with, with some even rejecting clients' requests for new derivative trades or evaluating on a case-by-case basis. Similar measures have been taken regarding TSMC.

According to Bitget market data, SK Hynix plunged during the session, down nearly 7% from the intraday high; Samsung Electronics fell 4.5% from the intraday high.