[Money Flow] Entering the US Adjustment Period… Seohak Ants’ US Stock Deposit ‘Plummets’Stocks plunge, deposits fall below $100 billion… US stock buying continues Hong Kong stock deposits increase… Xiaomi, BYD, Alibaba, etc. net purchases Trader on the New York Stock Exchange [AFP Yonhap News Agency photo archive] (Seoul = Yonhap News) Reporter Im Eun-jin = As the New York stock market, which had been running smoothly last year, has recently collapsed, the amount of U.S. stocks held by domestic investors has plummeted to below 100 billion dollars. The Western ants began to turn their attention to overseas markets, such as Hong Kong, which had been relatively neglected until then. According to the Korea Deposit Insurance Corporation on the 15th, the amount of US stocks held by domestic investors was tallied at 95.44 billion dollars (approximately 138.7 trillion won) as of the 12th. This is a 7.27% decrease compared to the end of last month, when it was 129.2 billion dollars (approximately 149.6 trillion won). The amount of U.S. stocks held in custody, which had been increasing, has recently decreased and fallen below the $100 billion mark. Considering that domestic investors' buying of U.S. stocks continues this month, the decrease in the amount held is interpreted as a result of stock price fluctuations. This month, US stocks were net bought for $1.73 billion (about 2.5 trillion won). This is interpreted as a result of worsening investor sentiment amid tariff uncertainty triggered by U.S. President Donald Trump and growing concerns about an economic downturn. In the aftermath, there is analysis that the Dow Jones Industrial Average, the Standard & Poor's (S&P) 500 Index, and the Nasdaq Composite Index have all recorded declines of around 10% from their all-time highs, indicating that they have entered a full-scale correction phase. Ha Geon-hyeong, a researcher at Shinhan Investment & Securities, said, "Until January when last year's economic indicators were released, there were concerns about the economy overheating due to the economic trend exceeding expectations, but starting in February when this year's indicators began to be released, the economic outlook has been adjusted downward and even the possibility of a recession has been raised." He then pointed out that "the Trump administration's anti-immigration, high-tariff policies and the resulting uncertainty are being cited as the main culprits of the recession." On the other hand, the amount of Hong Kong and Japanese stocks held by domestic investors increased. Hong Kong stock deposits increased by 8.70% from the end of the previous month to $2.38 billion (about 3.5 trillion won), and Japan's also increased by 0.38% to $4.4 billion (about 6.4 trillion won) during the same period. Investors discouraged by the decline in U.S. stock prices appear to be starting to look to other countries. Domestic investors have made net purchases of Hong Kong stocks worth $150 million (about 221.3 billion won) this month. The top 50 foreign stocks that domestic investors net-bought this month included five stocks listed on the Hong Kong Stock Exchange, including Xiaomi ($42.5 million), Beijin ($37.41 million), BYD ($28.51 million), Alibaba ($17.37 million), and SMIC ($13.47 million). Baek Gwan-yeol, a researcher at LS Securities, said, "The Hong Kong H-Index is up 23% year-to-date, recording the highest return among major stock markets." He said, "Hong Kong stocks, which are sensitive to uncertainty and can be perceived as overheated in the short term on the AH Premium Index, are most exposed to downside risks due to Trump's tariff policy and concerns about a U.S. recession," but added, "I believe that investment sentiment toward Greater China stock markets is currently intact." Meanwhile, funds surrounding the domestic stock market have decreased this month. According to the Korea Financial Investment Association, credit transaction loans decreased by KRW 60.3 billion from the end of the previous month to KRW 18.1728 trillion as of the 12th, and investor deposits decreased by KRW 3.2469 trillion to KRW 52.806 trillion during the same period. engine@yna.co.kr
