Foreign investors' buying concentrated in SK Hynix ADR

Domestic investors are buying up large amounts of SK Hynix ADRs listed on Nasdaq. According to the Korea Securities Depository, they ranked first in net purchases of overseas stocks over the past week, and they also had the largest cumulative net purchases since the listing. The reason investors have flocked to them is the accessibility of being able to buy them for less money than the common stock, as well as expectations that the premium attached in the U.S. market could be maintained. However, the current ADR is trading at a higher price than the common stock, and it is less favorable than the common stock in that exchangerate fluctuations and overseas stock taxation apply. The article reported that concerns over overheating of SK Hynix ADRs in the U.S. were also raised. Some believe that if conversions between the common stock and ADR increase in the future, the price gap could narrow, but individual investors are considered to face difficulties using the conversion process, and actual expansion of supply is also limited, which are noted as variables.