After the listing of Hynix ADR, there are many comparisons with TSMC.
There is a view that Hynix ADR will also have a premium of more than 15% compared to this week, as it is said that TSMC has a premium of more than 15% compared to this week's ADR.
The problem arises because ADR -> This week is easy to move, but This week -> ADR is difficult...
Looking at our ADR comparison, it's not necessarily the case.
SK Telecom's this week and ADR are 1.8:1, but in reality
The ADR price is 48,200 won, and multiplying by 1.8 = 86,760 won.
It's not much different from today's closing price of around 85,900.
In the case of POSCO Holdings, it is 4:1,
The ADR price is 76,300 won, and multiplying by 4 is 305,200 won.
Today's closing price is 310,000 won.
This is also roughly right.
Listening to those who raise counterarguments
They say that the ADR share count is relatively larger than other ADRs, and the trading volume will be higher than other stocks, so the premium will be maintained (in fact, the trading volume of other ADRs is extremely small...).
Personally, I don't think it will go up to a 15% premium and will eventually converge to a level of 10:1 or 9.8:1.
However, the question is whether the ADR price will follow this week's price or vice versa. If it goes down, a new disaster will occur in the US semiconductor market...
I expect it to converge someday, but Hynix ADR is different from other ADR stocks. It will be interesting to see if the premium continues.
