Wall Street Banks to Limit Hedge Funds' Long Leverage on Asian Chip Stocks like SK Hynix and Samsung

June 12 — Global banks are clamping down on hedge funds’ leverage-fueled bets on top Asian chipmakers including SK Hynix and Samsung Electronics, Bloomberg reported, citing sources, amid concerns of a potential pullback following this year’s sharp sector rally. Brokerages like Citigroup, JPMorgan Chase, and Goldman Sachs have hiked financing costs for hedge funds trading SK Hynix and Samsung Electronics stocks via derivatives, sources said. Lenders are also tightening new trade limits and narrowing eligible counterparties: some firms have outright rejected requests for new derivative positions, while others review such asks on a case-by-case basis. Similar restrictions apply to Taiwan Semiconductor Manufacturing Co. (TSMC). Bitget market data shows SK Hynix dipped nearly 7% from its intraday high during the session, while Samsung Electronics fell 4.5% below its intra-day peak.