[Alpha Biz=(Chicago) Reporter Paul Lee] For the first time in more than a month this year, the loss of the Hong Kong H Index's basic equity-linked securities (ELS) exceeded 500 billion won at the top five commercial banks alone, the report showed. Financial authorities are conducting a second on-site inspection of ELS vendors.

According to the financial sector on the 14th, a total of 973.3 billion won worth of Hong Kong H Index ELS products sold by five major commercial banks, including KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup, returned by the 7th of this month. However, only 451.2 billion won was returned by the invested customers. The average loss rate is about 53.6%, and the loss is KRW 522.1 billion.

By the end of this year, Hong Kong H Index ELS products will be maturing a total of KRW 15.4 trillion. Currently, the Hong Kong H index stands at around 5,300, below half of the high point (about 12,000) when the product was sold in 2021, so the total loss could grow to around 7 trillion won.

 

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