The Korean stock market experienced a sharp sell-off in July, and the most popular artificial intelligence trading positions during the year were concentrated and liquidated, making it the worst performing stock market in the world in the third quarter. Dragged down by the sell-off of memory chip stocks at the beginning of the quarter, the Korea Composite Stock Price Index fell 18.8% in the three months ending September 30. Betting on companies such as Samsung Electronics and SK Hynix, Prashant Bayani, Asia Chief Investment Officer of BNP Paribas Wealth Management, which was once the most mainstream in the market looking at artificial intelligence, said that the Korean stock market has become a weather vane for investors to judge the prospects for huge investment in AI infrastructure. One of the ways. Situational Awareness, a hedge fund owned by Leopold Ashenbrenner, went out of business. The fund held a highly leveraged position in Korean memory chip stocks; combined with Korean retail investors fervently pursuing leveraged single-stock ETFs, market sentiment was excessively high. Multiple factors combined to cause positions to be concentrated and liquidated in July. Paribas Bayani said that after the July sell-off, the valuation appeal of the Korean market has increased, but it is difficult for the valuation to rise sharply again. “The market is expected to reap reasonable returns, but it is almost impossible to see another 70% increase.” Market valuations have shrunk. Together, Samsung Electronics and SK Hynix account for about half of the total market value of the Korean stock market, and the forward price-earnings ratio of the two companies has fallen back to a range of 4 to 5 times.

The Korean stock market experienced a sharp sell-off in July, and the most popular artificial intelligence trading positions during the year were concentrated and liquidated, making it the worst performing stock market in the world in the third quarter. Dragged down by the sell-off of memory chip stocks at the beginning of the quarter, the Korea Composite Stock Price Index fell 18.8% in the three months ending September 30. Betting on companies such as Samsung Electronics and SK Hynix, Prashant Bayani, Asia Chief Investment Officer of BNP Paribas Wealth Management, which was once the most mainstream in the market looking at artificial intelligence, said that the Korean stock market has become a weather vane for investors to judge the prospects for huge investment in AI infrastructure. One of the ways. Situational Awareness, a hedge fund owned by Leopold Ashenbrenner, went out of business. The fund held a highly leveraged position in Korean memory chip stocks; combined with Korean retail investors fervently pursuing leveraged single-stock ETFs, market sentiment was excessively high. Multiple factors combined to cause positions to be concentrated and liquidated in July. Paribas Bayani said that after the July sell-off, the valuation appeal of the Korean market has increased, but it is difficult for the valuation to rise sharply again. “The market is expected to reap reasonable returns, but it is almost impossible to see another 70% increase.” Market valuations have shrunk. Together, Samsung Electronics and SK Hynix account for about half of the total market value of the Korean stock market, and the forward price-earnings ratio of the two companies has fallen back to a range of 4 to 5 times.