Welcome to Subscribe [Korea Stock Leverage Risk Situation Update 0729]

English summary

Today KOSPI index fell 5.99%, Samsung and SK Hynix fell 5.23% and 9.61% respectively. Korea's Blue House policy office chief said government is closely monitoring market, but not yet at stage of activating stock market stabilization fund. We update leverage situation as follows: 1. Leverage clearing: As of July 28, Korean stock brokerage margin balance fell to 33.2 trillion KRW, down 14% from high of 38.6 trillion; global Korean stock leverage ETF size fell from high of 82.0 trillion KRW to 36.9 trillion as of July 27, down 55%; July 28 forced liquidation amount 13.89 billion KRW, accounting for 1.3% of trading debt (vs. 10.2% high on July 9). 2. Funds: July 29, Korean retail net sold 2.4 trillion KRW, foreign net sold 0.9 trillion, domestic institutions net bought 3.3 trillion. 3. ...