China Merchants Securities has ceased market-making activities for the Huatai-PineBridge South Korea Semiconductor ETF, the mainland’s only exchange-traded fund focused on the Korean market.
The Shenzhen-based brokerage’s decision to withdraw comes just weeks after it stepped in to provide liquidity for the instrument, signaling a rapid reassessment of risk exposure in the region.
The retreat coincides with a sharp reversal in South Korean equity markets, which have snapped a prolonged rally driven by surging semiconductor demand.
Renewed downward pressure on the Kospi, heavily influenced by weakness in Samsung Electronics, has heightened volatility and prompted concerns about the sustainability of the recent uptrend.
The abrupt downturn has led market observers to question whether the sector’s momentum has peaked.
According to South China Morning Post, the move reflects broader efforts by Beijing to stabilize domestic capital markets and protect retail investors from spillover effects.