As the Hong Kong Hang Seng China Index (HSCEI) has experienced a sharp decline, it has led to substantial capital losses of over 40 percent in Equity Linked Securities (ELS) products based on this index. In response to the significant risks in the trillions of won facing HSCEI-linked ELS, the Financ
ELS products based on European stock markets are on the verge of principal losses amid the spread of COVID-19.The Euro Stoxx 50 index plummeted by 12.4 percent to 2,545.23 on March 12 and by 33.8 percent for the latest one-month period, while S&P 500 and Nikkei 225 dropped 26.4 percent and 22.1 perc
The following is an analysis from Shinhan Investment Corp. of the impact that the spread of COVID-19 has on the Korean economy, capital markets and major industrial sectors. -- Ed. Economy: Ongoing impact of COVID-19 on the real economyThe COVID-19 outbreak affects the real economy: 1)decline in dom
As international oil prices have fallen below the US$50 level per barrel for the first time in 14 months, derivative linked securities (DLS) investors have become tensed up as most DLS are based on oil prices as an underlying asset.According to the Korea Securities Depository (KSD), the issue balanc
According to the Korea Securities Depository, the number of ELS issue cancellations in the South Korean market edged down compared to the preceding month to 122 last month but the ratio of cancellation, 9.6%, reached the highest level since January this year due to a decrease in total issue value. L
KB Kookmin Bank offers various inducements, such as tailored product lineup and supplementary services, to customers when purchasing “KB Kookmin Almighty ISA.”The bank is focusing on preventing incomplete sales and not rushing out sales. An official from KB Kookmin Bank said, “The bank aims to desig
Concerns over derivatives-linked securities (DLS) based on crude oil are rising as international oil prices are plummeting. The domestic DLS market, which has grown to reach 100 trillion won (US$85 billion) in size, is freezing up, with large losses looming to follow this summer’s panic in the equit
A domestic company filed a class action suit against global banks in New York, US accusing them of “currency manipulation” and requesting compensation. This is the first time a Korean company has filed a class action suit against global banks in the US for currency manipulation.On November 17 (local
Small-sized exporters’ concerns are rising as the strong won trend continues. Even the currency hedging products do not appear to be a viable option for them, due to the recent ruling by the Supreme Court that the knock-in knock-out (KIKO) option is not unfair. According to the Bank of Korea, the wo