The market's optimism about Korean stocks gradually subsided, and a cautious mentality was on the rise. Some investors are worried that the current round of gains is heating up too fast, and are beginning to hedge their positions and reduce their holdings. The hedge fund Golden Horse has reduced risk exposure and added derivatives hedging tools; Prudential Investment in the UK has reduced its holdings of individual shares in memory chip and wafer manufacturers to move downstream in the artificial intelligence industry chain. An analysis of Asus MSCI Korea Index ETF options shows that investors are buying bearish safe-haven contracts one after another. The ETF plummeted 14% in the US market last Friday. The above operations reflect the difficulties faced by global asset management institutions. The two major chip giants, Samsung Electronics and SK Hynix, drove Korea's composite stock price index to rise by more than 90% during the year. Although investors are still optimistic about the two companies, they are becoming more cautious about the layout of additional capital and are reserving cash to lay out other markets. Affected by expectations of interest rate hikes, US technology stocks were sold off last Friday. It can be seen that popular trading positions will quickly collapse after market sentiment changes. This risk may be transmitted to the local market after the opening of the Korean stock market. “Over the past few weeks, we have reduced our overall holdings slightly and added derivatives hedging,” said Yi Ling Ong, managing partner of Golden Horse. She also said that many large-scale IPOs such as SpaceX this month will encourage institutions to cash out and participate in the IPO, so it is a safe move to keep some backup funds.

The market's optimism about Korean stocks gradually subsided, and a cautious mentality was on the rise. Some investors are worried that the current round of gains is heating up too fast, and are beginning to hedge their positions and reduce their holdings. The hedge fund Golden Horse has reduced risk exposure and added derivatives hedging tools; Prudential Investment in the UK has reduced its holdings of individual shares in memory chip and wafer manufacturers to move downstream in the artificial intelligence industry chain. An analysis of Asus MSCI Korea Index ETF options shows that investors are buying bearish safe-haven contracts one after another. The ETF plummeted 14% in the US market last Friday. The above operations reflect the difficulties faced by global asset management institutions. The two major chip giants, Samsung Electronics and SK Hynix, drove Korea's composite stock price index to rise by more than 90% during the year. Although investors are still optimistic about the two companies, they are becoming more cautious about the layout of additional capital and are reserving cash to lay out other markets. Affected by expectations of interest rate hikes, US technology stocks were sold off last Friday. It can be seen that popular trading positions will quickly collapse after market sentiment changes. This risk may be transmitted to the local market after the opening of the Korean stock market. “Over the past few weeks, we have reduced our overall holdings slightly and added derivatives hedging,” said Yi Ling Ong, managing partner of Golden Horse. She also said that many large-scale IPOs such as SpaceX this month will encourage institutions to cash out and participate in the IPO, so it is a safe move to keep some backup funds.