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South Korean Stock Index Opens Down 5%

On July 28, the South Korean KOSPI index opened down over 5%, with SK Hynix falling more than 8% and Samsung Electronics down 6%. The Nikkei 225 index opened down 0.6%. (Jin Shi)

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  • Chip Stock Sell-off Intensifies, Japanese and Korean Markets Plummet

    On July 28, influenced by concerns over Nvidia's significant AI supply agreements and intensified market competition, investor sentiment was dampened, leading to a sharp decline in the Japanese and Korean stock markets. The Nikkei 225 index fell by as much as 4%, reaching its lowest level since May 22; the Tokyo Stock Exchange index saw a maximum drop of 2.7%. The South Korean KOSPI index plummeted by 7.6%, marking a new low since April 20. Semiconductor and equipment stocks, including Tokyo Electron, Kioxia, Samsung Electronics, and SK Hynix, led the decline, each dropping over 9%. Notably, SK Hynix's stock price plummeted by 30% at one point, marking the largest single-day drop in its history; Kioxia's stock fell by 18%, the largest drop since November of last year. Amid a wave of AI-related transactions valued at over $750 billion, the cost of Nvidia's debt default insurance surged, triggering a decline in tech stocks. Hideyuki Ishiguro, Chief Strategist at Nomura Asset Management, noted that following reports of significant investment deals involving Nvidia, its credit risk has increased, which investors view as a negative signal. Furthermore, Ishiguro pointed out that advancements in semiconductor manufacturing equipment in China pose a threat to Japanese suppliers, who have long held a competitive advantage in this field.

  • FTSE China A50 Index Futures Drop Over 1% in Early Trading

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  • Swiss Pictet Hong Kong Fund Recently Reduced Stake in SK Hynix

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  • Financing Balance in Two Markets Increases by 10.025 Billion Yuan

    As of July 27, the financing balance on the Shanghai Stock Exchange was reported at 1.364315 trillion yuan, an increase of 13.67 billion yuan compared to the previous trading day; the financing balance on the Shenzhen Stock Exchange was reported at 1.303962 trillion yuan, a decrease of 3.645 billion yuan from the previous trading day. The total financing balance for both markets reached 2.668277 trillion yuan, an increase of 10.025 billion yuan compared to the previous trading day. (Jin Shi)

  • SK Hynix Loses $47 Billion in Market Value as Storage Chip Boom Shows Cracks

    On July 28, SK Hynix saw its market value evaporate by $47 billion in just over a month, transforming from one of the hottest themes in global artificial intelligence (AI) trading into a problematic holding in investment portfolios. Investors are concerned about overcrowding in AI-themed trades and the sharp increase in volatility due to leveraged trading, leading to a nearly 38% drop in the company's stock price from its historical high in June. During this period, SK Hynix's market value decline was only surpassed globally by SpaceX. While the AI boom has driven chip prices up, SK Hynix is expected to announce record quarterly results on Wednesday, but investors are becoming increasingly cautious, worried that rising storage chip costs may force users to reduce consumption and turn to cheaper alternatives.

  • Kioxia Holdings Shares Plunge 18%

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