How do you see the fact that Hyundai will leave the GDR program in the course of December and that the share will then no longer be tradable in Europe? Except via an ETF, you will then no longer have access 🧐
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2Semana
@TomTurboInvest actually quite relaxed, because your statement is not correct across the board and the share will remain tradable in Europe 😉
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@SAUgut77 I am admittedly not an expert on South Korea, but I once heard that Korean shares cannot be held in custody in Europe or the usa due to regulations. The GDR program was one possibility, but if that is discontinued on Dec. 18? Can they still be traded on European exchanges?
Hyundai recommends:
"Holders of GDRs are encouraged to contact their own investment advisors and brokers for further information on actions that may be taken with respect to their GDR holdings."
I don't have a Hyundai myself, so not relevant to me anyway. I just hope there is a good solution for shareholders.
Not every broker offers the Korean stock exchange
Hyundai recommends:
"Holders of GDRs are encouraged to contact their own investment advisors and brokers for further information on actions that may be taken with respect to their GDR holdings."
I don't have a Hyundai myself, so not relevant to me anyway. I just hope there is a good solution for shareholders.
Not every broker offers the Korean stock exchange
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2Semana
@TomTurboInvest Let's put it this way, it's a complex topic....
First of all, however, it must be pointed out that Hyundai will not cancel the entire GDR program, but will only delist in England and Luxembourg for cost-benefit reasons (too little volume) on 19.12.2024 and a large part of the shares will be withdrawn in the course of the ARP that has just started.
https://www.research-tree.com/newsfeed/article/hyundai-motor-co-notice-of-intention-to-delist-gdrs-2600152
In addition, GDRs are not a real share per se, but a kind of participation/bond that is brokered via a third party, the holder of the original share. And with regard to the delisting itself, it is more likely due to the fact where the respective broker has its depository for the GDRs.
As far as I know so far, customers of Cortal Consors and INGdiba, for example, are affected by this.
I have my own via Smartbroker+ and have not yet received any notification or request to sell. I don't think there will be much more to come.
With regard to trading in Korean shares, it is not directly due to the regulation itself, but to the fact that a KRX membership with a licensed securities company is required for trading in these shares.
According to my information, this would be the case with Interactive Brokers, for example, but I would have to do some more research.
But an ETF would also have to have such a rental membership in order to hold the share directly.
Be that as it may, I'm quite relaxed about the whole thing so far and Hyundai would also be shooting itself in the foot....
First of all, however, it must be pointed out that Hyundai will not cancel the entire GDR program, but will only delist in England and Luxembourg for cost-benefit reasons (too little volume) on 19.12.2024 and a large part of the shares will be withdrawn in the course of the ARP that has just started.
https://www.research-tree.com/newsfeed/article/hyundai-motor-co-notice-of-intention-to-delist-gdrs-2600152
In addition, GDRs are not a real share per se, but a kind of participation/bond that is brokered via a third party, the holder of the original share. And with regard to the delisting itself, it is more likely due to the fact where the respective broker has its depository for the GDRs.
As far as I know so far, customers of Cortal Consors and INGdiba, for example, are affected by this.
I have my own via Smartbroker+ and have not yet received any notification or request to sell. I don't think there will be much more to come.
With regard to trading in Korean shares, it is not directly due to the regulation itself, but to the fact that a KRX membership with a licensed securities company is required for trading in these shares.
According to my information, this would be the case with Interactive Brokers, for example, but I would have to do some more research.
But an ETF would also have to have such a rental membership in order to hold the share directly.
Be that as it may, I'm quite relaxed about the whole thing so far and Hyundai would also be shooting itself in the foot....
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•@SAUgut77 has it also become too uncertain for you? As long as you don't have large amounts in it, it's better to sell in a situation like this anyway. If you then know more, you can always get back in.
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