Lates News

The optimistic sentiment in the South Korean stock market is fading, and cautious sentiment is gradually increasing. Some investors are hedging their positions and reducing their holdings for fear of a rapid and excessive rise. Hedge fund Golden Horse has reduced its risk exposure and increased allocation to derivative hedging tools; UK Prudential Investments has reduced its holdings in storage chips and wafer manufacturing stocks, and shifted towards downstream in the artificial intelligence industry chain. Analysis of options on iShares MSCI Korea Index ETF shows investors have been buying put options for a safe haven. The ETF dropped 14% in the US market last Friday. These operations reflect the dilemma faced by global asset managers. Yi Ling Ong, Managing Partner of Golden Horse, said, "In the past few weeks, we have slightly reduced overall holdings and added derivative hedging." She also mentioned that multiple large IPOs this month, such as SpaceX, will prompt institutions to cash out and participate in new stock subscriptions, so "holding a certain amount of cash is a wise move."