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South Korean chip-related exchange-traded funds saw outflows of approximately $1 billion this month due to waning investor enthusiasm for AI bets, as well as regulatory authorities tightening measures to curb demand. Since early August, $381 million has been withdrawn from products linked to Samsung Electronics and $601 million from those associated with SK Hynix. This comes amid a slowdown in the surge of AI-driven stocks across Asian markets and India, with warnings about overstating market volatility—especially after the KOSDAQ index plunged 22% in a global sell-off of AI stocks. As a result, Korean authorities increased the minimum bank deposit requirements for new investors and imposed a five-day trial trading period on them.
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