Forced selling of AI stocks in Asia begins to ease as investors cut margin by over 10%

Price Action
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Summary · why it matters

Asian stock markets are showing signs of recovery after retail investors in South Korea, Taiwan, and China significantly reduced their use of margin trading. Outstanding margin loans in China and South Korea have fallen more than 10% from record highs at the end of June, while in Taiwan they declined for six consecutive trading days to the lowest level since May. Leveraged ETFs tracking Samsung Electronics and SK Hynix saw assets under management shrink to 4.1 billion dollars from over 11 billion dollars on June 25, and fund flows turned to net outflows over the past two weeks. Analysts view this deleveraging as a necessary correction and a positive for the market. South Korea's Kospi index surged as much as 17% on Friday, its biggest daily gain on record. Taiwan's Taiex rose as much as 7.4%, and China's STAR50 Index jumped as much as 9%. JPMorgan Chase noted that hedge fund deleveraging is nearly complete and that the investment structure of the South Korean market is becoming attractive again.

Impact on stocks 2

Semiconductors▲ · 1 stocks
Artificial Intelligence▲ · 1 stocks
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