South traders that are Korean bought into U.S. stocks like GameStop Corp. and Tesla Inc. in January, driving their buying of overseas equities to a record high in January.
Korean person and institutional investors purchased a net $5 billion of foreign stocks in January, their most-ever monthly tally since 2011, if the Korea Securities Depository began data which can be collecting.
Their roles now include $10 billion in Tesla Inc. shares — the largest for almost any stock — along with about $265 million in GameStop Corp., KSD’s data show. GameStop, an videogame that is unprofitable, has drawn day traders globally, including from India and China.
With U.S. shares representing some 80% of their holdings, Korean retail investors are “highly exposed” to U.S. market risks, Goldman Sachs Asia that is senior economist Kwon said in an email on Sunday.
“With their heavy buying within a equity that is international in late 2020, a 10% market modification for example could place one-third of these holdings at a negative balance,” Kwon had written. South traders that are Korean bought into U.S. stocks.
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South Korean shopping and investors being institutional a record amount of foreign shares in January
Korea’s retail investors, having buoyed their domestic markets, looked to the U.S. and specially tech stocks like Tesla and Apple Inc. for returns 12 months that is last. The standard Kospi surged 31% in 2020, making the Korean bourse the world’s performer that is most beneficial after that of Nigeria’s. Regulators in Seoul have now been warning investors which can be retail and especially those indulging in “reckless borrowing” to be cautious about investing offshore.