SK Hynix ADRs Attract Retail Investors... US Analysts Call Buying Overpriced Shares 'Self-Destructive Behavior'

South Korean retail investors purchased over $9 billion worth of SK Hynix American Depositary Receipts (ADRs) listed on NASDAQ, prompting U.S. asset managers to criticize the purchases as 'self-destructive' due to the ADRs being significantly overpriced relative to the underlying shares. Domestic investors' ADR purchases totaled $135.76 million from July 17-23, surpassing the $135 billion in domestic stock purchases. The ADR price ($169.50) is 40% higher than the underlying shares ($175.90), prompting Acadian Asset Management's Owen LaMont to call the mispricing 'complete market dysfunction' and warn investors are paying $149 for a $100 asset.