$ETH
Did the Korean stock market collapse?
KOSPI has its worst quarter since 2020
Is the AI hype starting to cool off?
Korean stock investors are really a bit baffled this quarter
Just yesterday they were celebrating an AI chip binge
In the blink of an eye, the KOSPI handed in its worst report card
The cumulative decline in Q3 is about 19%
Its poorest quarterly performance since Q1 2020
The main reasons for the drop are
The KOSPI index is highly tied to the semiconductor sector
Samsung and SK hynix—two major AI memory leaders—have extremely high weights
The earlier rally in AI chips built up a large pile of realized gains
Capital rushed to lock in profits and exited
Another concern in the market is that HBM memory chips may have reached a peak in the business cycle
So it triggered selling
Another very important reason is
Korea’s retail-crowd leveraged ETF trading is very active
Once the index starts falling
leveraged products are forced to unwind positions
creating a chain-reaction stampede
This further amplifies the magnitude of the decline
Korean stocks are a leading indicator for the AI compute and storage sectors
Any shift in global capital’s expectations for the AI sector
will show up first in Korean semiconductor stocks
What’s next and most important is the earnings reports from Samsung and SK hynix
If conditions are still not good again
then this panic sentiment will directly transmit
For now, for “Da Bing” (the big picture), it’s only an early warning of sentiment
It won’t directly trigger a market downturn
#韩国kospi创2020年以来最差季度
Did the Korean stock market collapse?
KOSPI has its worst quarter since 2020
Is the AI hype starting to cool off?
Korean stock investors are really a bit baffled this quarter
Just yesterday they were celebrating an AI chip binge
In the blink of an eye, the KOSPI handed in its worst report card
The cumulative decline in Q3 is about 19%
Its poorest quarterly performance since Q1 2020
The main reasons for the drop are
The KOSPI index is highly tied to the semiconductor sector
Samsung and SK hynix—two major AI memory leaders—have extremely high weights
The earlier rally in AI chips built up a large pile of realized gains
Capital rushed to lock in profits and exited
Another concern in the market is that HBM memory chips may have reached a peak in the business cycle
So it triggered selling
Another very important reason is
Korea’s retail-crowd leveraged ETF trading is very active
Once the index starts falling
leveraged products are forced to unwind positions
creating a chain-reaction stampede
This further amplifies the magnitude of the decline
Korean stocks are a leading indicator for the AI compute and storage sectors
Any shift in global capital’s expectations for the AI sector
will show up first in Korean semiconductor stocks
What’s next and most important is the earnings reports from Samsung and SK hynix
If conditions are still not good again
then this panic sentiment will directly transmit
For now, for “Da Bing” (the big picture), it’s only an early warning of sentiment
It won’t directly trigger a market downturn
#韩国kospi创2020年以来最差季度