Svmuu News: After the market opened this afternoon, South Korea’s KOSPI index staged a “deep V” rebound, rising steadily and at one point gaining more than 1 percent, after having previously fallen more than 5 percent. Samsung Electronics rose more than 4 percent. Japanese stock indices also turned positive, with the A50 surging sharply, while U.S. stock futures also moved into positive territory. Analysts believe two pieces of positive news spurred this rally: first, South Korea’s market stabilization measures, and second, substantial buying in A-share ETFs.
From the perspective of market interconnectivity, the South Korean government’s actions may be the primary factor. Looking at the A-share market, data from Xingzheng Financial Engineering shows that on July 13, the core ETFs tracking the three major indices saw substantial net inflows. Among them, the CSI 300 ETF saw inflows of 8.493 billion yuan; the CSI 500 ETF saw inflows of 7.352 billion yuan; and the CSI 1000 ETF saw a substantial increase of 11.923 billion yuan. This may indicate that the current price level is also recognized as a valid entry point by large institutional investors. (Securities Times)