The U.S. premium for SK Hynix is set to stay after Korean regulatory ruling

SK Hynix’s ADRs are trading at a large premium versus its domestic ordinary shares, and that premium is expected to persist after restrictions limited the creation of new ADRs via conversion of local shares. The change mainly affects supply mechanics in the ADR market rather than underlying operations, implying no clear new fundamental catalyst.

Analysis

SK Hynix’s ADRs are trading at a large premium versus its domestic ordinary shares, and that premium is expected to persist after restrictions limited the creation of new ADRs via conversion of local shares. The change mainly affects supply mechanics in the ADR market rather than underlying operations, implying no clear new fundamental catalyst.