Wall Street banks restrict hedge funds' long leverage on Asian chip stocks such as SK Hynix and Samsung.
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According to media reports, insiders have revealed that global banks are restricting hedge funds’ leveraged bets on Asia’s leading chipmakers (including SK Hynix and Samsung Electronics) after this year’s sharp rally has sparked concerns about a potential pullback.
According to people familiar with the matter, brokers including Citigroup, JPMorgan, and Goldman Sachs have raised the financing costs for hedge funds betting on SK Hynix and Samsung Electronics shares through swaps. Banks have tightened the size of new trades and which companies to offer trades to, with some banks even rejecting new swap transaction requests from clients or evaluating them on a case-by-case basis. For TSMC, banks have also taken similar measures.
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