SK Hynix ADR share increase may attract 1.45 trillion KRW in passive funds if MSCI includes it

According to ME News, on August 5 (UTC+8), Yeom Dong-chan, an investment analyst at Korea Investment & Securities, stated that if MSCI includes SK Hynix’s recent share issuance for its ADR listing in its August quarterly review, the company’s weight in the MSCI Emerging Markets Index could increase by 0.17 percentage points. The report estimates that index funds tracking the MSCI Emerging Markets Index have a total asset size of approximately $593 billion, and the weight adjustment could trigger around KRW 1.45 trillion in passive buying. The analyst noted that while this scale is relatively small compared to SK Hynix’s market capitalization and daily trading volume, it may still have a positive impact on market supply and demand. To facilitate its ADR listing, SK Hynix conducted a third-party placement, increasing its total outstanding shares from 713 million to 730 million, a rise of approximately 2.5%. The new shares became effective on July 29. However, it remains uncertain whether MSCI will immediately reflect this share increase in its upcoming August quarterly review, as it may be delayed until the November regular review. The review results will be announced on August 13 at 6:00 AM Korea Time. (Source: BlockBeats)