Serenity: SK hynix ADR trades at a premium of more than 25% versus Korean stocks, and the July 29 convertible bond presents an arbitrage opportunity

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PANews July 19 — “White Hair Stock God” Serenity posted a reminder that, currently, SK Hynix’s American Depositary Receipts (ADR) SKHY trade at a premium of more than 25% versus South Korean domestic stocks, and the two classes of shares will become convertible on July 29. This provides arbitrage opportunities for the market and may compress the ADR premium. This could boost South Korean stocks or put pressure on U.S. stocks. Serenity noted that currently, U.S. ADRs correspond to about 2.5% of shares, and at that time, around 22.5% of shares can be converted.

SKHY0.89%
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