Starting in late June 2026, the Korean semiconductor sector, which had previously doubled its strength, was under intense sell-off pressure. Samsung Electronics and SK Hynix made a U-turn and plummeted after experiencing a one-sided rise for more than half a year, announcing the beginning of a valuation correction. As the only cross-border ETF with a layout in the Korean market, the China-Korea semiconductor ETF Huatai Berry also fell sharply at the same time, falling by more than 30% since July. At the same time, the Hong Kong stock market staged an extreme “roller coaster” market with the double leverage products linked to the Korean companies mentioned above. This sharp trend of polarization has completely pushed the market's belief in the “supercycle” of AI storage to a high point of disagreement. Currently, there are significant differences in the future market trend of the Korean semiconductor sector. Affected by tight liquidity in the global capital market, marginal changes in the industry cycle, imbalances in the market transaction structure, and continued accumulation of sector weakness, the valuation of Korea's storage semiconductor sector continues to be under pressure, and market shocks have intensified. Cathay Pacific Fund points out that the collapse of the Korean market is a heavy wake-up call: a volatile circuit combined with excessive leverage is often a source of risk. This also shows that short-term market prices are sometimes not exactly equal to changes in industry fundamentals. When positions are too concentrated, capital is overcrowded, and the leverage ratio is too high, even if the industry does not suddenly deteriorate, the market may adjust rapidly.

Starting in late June 2026, the Korean semiconductor sector, which had previously doubled its strength, was under intense sell-off pressure. Samsung Electronics and SK Hynix made a U-turn and plummeted after experiencing a one-sided rise for more than half a year, announcing the beginning of a valuation correction. As the only cross-border ETF with a layout in the Korean market, the China-Korea semiconductor ETF Huatai Berry also fell sharply at the same time, falling by more than 30% since July. At the same time, the Hong Kong stock market staged an extreme “roller coaster” market with the double leverage products linked to the Korean companies mentioned above. This sharp trend of polarization has completely pushed the market's belief in the “supercycle” of AI storage to a high point of disagreement. Currently, there are significant differences in the future market trend of the Korean semiconductor sector. Affected by tight liquidity in the global capital market, marginal changes in the industry cycle, imbalances in the market transaction structure, and continued accumulation of sector weakness, the valuation of Korea's storage semiconductor sector continues to be under pressure, and market shocks have intensified. Cathay Pacific Fund points out that the collapse of the Korean market is a heavy wake-up call: a volatile circuit combined with excessive leverage is often a source of risk. This also shows that short-term market prices are sometimes not exactly equal to changes in industry fundamentals. When positions are too concentrated, capital is overcrowded, and the leverage ratio is too high, even if the industry does not suddenly deteriorate, the market may adjust rapidly.