East Money Strategy (2026-07-27)

English summary

Referring to the 2015 A-share experience, has the Korean stock market bottomed in 2026? The 2015 A-share experience shows that stock market deleveraging needs to go through two stages: the Korean stock market may have completed the first stage but not the second, and the medium-term bottom is yet to be confirmed: 1. Clearing of excess returns of leveraged funds: The excess returns of leveraged funds in the Korean stock market have been cleared, and the pressure of concentrated profit-taking, stop-loss, and forced liquidation has been released in phases, creating conditions for a market rebound; 2. Clearing of leveraged fund positions: However, the leveraged fund positions in the Korean stock market have not been cleared. Only after the leverage exposure is fully reduced and the residual selling pressure is fully digested can the market have the conditions to form a medium-term bottom. Risk warning: This image presents objective data for reference only and does not constitute any investment advice. Contact: Chen Guo/Jin Ke