Wall Street banks restrict hedge funds' leveraged long positions on Asian chip stocks such as SK Hynix and Samsung.

According to informed sources, global banks are restricting hedge funds' leveraged bets on top Asian semiconductor manufacturers, as concerns about a potential pullback have been raised following this year's sharp rise. The sources indicated that brokers including Citigroup, JPMorgan, and Goldman Sachs have increased the financing costs for hedge funds to bet on SK Hynix and Samsung Electronics stocks through derivatives. Banks have tightened the size of new trades and which companies they provide trades to, with some banks even rejecting new derivative trade requests from clients or evaluating them on a case-by-case basis. Similar measures have also been taken regarding TSMC.