Collective investment schemes (funds) will also be allowed to invest in SK hynix up to its actual market cap weight, beyond the identical single-stock investment limit of 10%.
The Korea Financial Investment Association said on the 31st that as SK hynix's market cap weight has exceeded 10% of the total market capitalization of the trading Korea Exchange market, it plans to add it, alongside Samsung Electronics, to the guidance list for market cap weight of listed shares.
The Korea Financial Investment Association announces the market cap weight information for listed shares on the 1st of every month. It is used as an indicator to manage the identical single-stock investment limit when running funds.
Under the Financial Investment Services and Capital Markets Act, collective investment business entities are generally allowed to invest only up to 10% in an identical single stock. However, there is an exception that allows investment up to the market cap weight when that weight exceeds 10%.
SK hynix's market cap weight in listed shares in Oct. this year averaged 10.89% per day, breaking through the 10% level. As of Sept., the average daily market cap weight was 8.37%.
The guidance list for market cap weight of listed shares is calculated based on the last trading day of each month and applies for one month.