The Asia-Pacific market has accelerated its decline! Is the United States taking action again?

The Asia-Pacific market has accelerated its decline! Is the United States taking action again?

Asia-Pacific markets collectively fell! In the afternoon today, the A-share Shanghai Index's decline expanded to 2% again, and the decline closed at 1.85%; the electronic chemicals, semiconductor, and memory chip sectors were among the top decliners. The securities sector fluctuated and weakened.

Huaan Securities fell by the limit, CICC and China Merchants Securities fell by more than 4%; Changjiang Securities and CITIC Construction Investment fell by more than 3%. The Nikkei 225 Index closed down 2.79%, Kioxia fell 15.03%, and SoftBank Group fell 6.27%.

The South Korea Composite Index closed down 6.37%, SK Hynix fell 11.53%, and Samsung Electronics fell 8.77%. So, what exactly happened? Analysts believe that on the one hand, the Asia-Pacific markets collectively fell today, and the Korean stock market fell by more than 6% again. There are rumors circulating that the U.S.

Department of Commerce will put pressure on Korean semiconductors. On the other hand, the Korean Financial Regulatory Commission announced measures against single stock leveraged ETFs, and South Korea will ban the listing of new single stock leveraged products.

South Korea has strengthened the margin requirements for single stock leveraged trading, raising the minimum margin from 10 million won to 30 million won, and only cash is recognized as a margin. South Korean regulators plan to increase the minimum trading unit from 1 share to 20 shares.

The major Asia-Pacific stock indexes closed down across the board, with the Nikkei 225 index closing down 2.79% at 66835.54 points. In terms of leading stocks, Kioxia fell 15.03%, SoftBank Group fell 6.27%, Advantest fell 5.93%, and Tokyo Electron fell 4.51%. In terms of rising stocks, Honda Motor rose 3.11% and Daiichi Sankyo rose 2.6%.

Japan's 30-year government bond yield rose 8 basis points to 3.835%. The Korea Composite Index closed down 6.37% at 6820.60 points. In terms of heavyweight stocks, SK SQUARE fell 12.3%, SK Hynix fell 11.53%, Samsung Electronics fell 8.77%, Hanwha Ocean rose 5.73%, and HD KOREA SHIPBUILDING & OFFSHORE rose 5.67%.

The Korean Financial Supervisory Service held a "Financial Situation Assessment Meeting" on the 16th, chaired by its president Lee Can-jin. Lee Can-jin said at the meeting that the Bank of Korea’s monetary policy committee’s increase in the benchmark interest rate was in line with market expectations.

However, in view of the recent significant increase in volatility in South Korea's domestic stock market, continued geopolitical tensions in the Middle East, and the still possibility of further interest rate hikes in the United States, he stressed the need to be fully prepared to deal with the risk of further expansion of financial market volatility.

As for A-shares, technology stocks rebounded occasionally in early trading, but changed drastically in the afternoon. The memory chip sector continued to fall. GigaDevice, Taiji Industrial, Huatian Technology, Changdian Technology, Demingli and other stocks closed down the limit.

Montage Technology A shares fell by more than 16%, Hong Kong stocks fell by more than 23%, Jiangfeng Electronics, Hengshuo Technology, Guoke Micro, etc. fell by more than 10%. Ke Chuang 50 fell more than 4% again. Subsequently, brokerage stocks also suffered a sharp decline, with Huaan Securities hitting its limit.

In the Asia-Pacific market, only Hong Kong stocks stand out. The pressure on the Asia-Pacific market mainly comes from the Korean stock market, and the reason why the Korean stock market fell sharply today is related to the pressure from the United States. U.S.

Commerce Secretary Wilbur Ross has publicly mentioned that he hopes Samsung Electronics and SK Hynix will set up local factories in the United States, with the goal of bringing 40% to 50% of semiconductor manufacturing back to the United States to achieve self-sufficiency.

However, South Korea’s Cheong Wa Dae responded by emphasizing that the expansion of domestic fab facilities is a national project and prioritizing investment in domestic facilities.

Cheong Wa Dae Economic Chief Secretary Kim Yong-beom said that the timely supply of memory chips is crucial to the artificial intelligence (AI) revolution, so South Korea has the responsibility to supply memory in large quantities and without delay.

South Korean Ambassador to the United States Kang Kyung-wha also made a rare temporary return to the country, which was speculated to be to coordinate the US-South Korean stance on issues such as semiconductor investment, although Cheong Wa Dae described it as a routine bilateral relationship consultation.

Sinolink Securities believes that the deleveraging of overseas transactions in the past two weeks has caused significant market fluctuations. The background is that the process of global financial expansion is slowing down. Since April, although the U.S.

stock market has rebounded strongly after the conflict in the Middle East began to ease, the performance of the European and Hong Kong stock markets has been relatively weak, and the prices of Bitcoin and gold have continued to fall.

The proportion of major global financial assets in global M2 has continued to fall in the past two months, from a high of 91.6% to the current 88.6%, which is slightly lower than the historical average +1.5 times the standard deviation. There is obvious pressure to fall from the high level.

From the perspective of the A-share market, in addition to the pressure on the Asia-Pacific market, it may also be related to the significant decline in M1 growth last month. Last month, the growth rate of M1 fell sharply by 1.5 percentage points. Looking at the pull rate, the pull rate of M0 and bank customer reserves to M1 did not change much from May.

The pull rate of unit demand deposits and household demand deposits to M1 dropped by 0.75 and 0.67 percentage points respectively from May. It can be seen that the decline in corporate demand deposits in June had a greater drag on M1. The A-share market has always used M1 to determine the macro strategy of buying and selling.

However, some analysts believe that the main reason affecting the market may not be the growth rate of M1, but incremental funds. Recently, both internal and external markets have been in a state of deleveraging, so fluctuations will be more severe. The fluctuations may then converge, but the mid- to long-term still depends on fundamentals. (

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