Massive Funds Flowing into the Stock Market... Waiting Funds and Stock Funds Reach Record Highs

[Financial News] The domestic stock market is emerging as a 'black hole' absorbing funds. The balance of the Comprehensive Asset Management Account (CMA), a representative waiting fund for the stock market, and the principal amount set for domestic stock funds have both reached record highs, with market liquidity quickly flowing into the stock market.
According to the financial investment industry on the 14th, the balance of the Comprehensive Asset Management Account (CMA) on the 3rd of this month was 89.4297 trillion won, breaking the previous record. This is an increase of more than 3 trillion won in about a month and a half from the 86 trillion won level on the 2nd of last month. As of the 10th, it maintained 89.0687 trillion won, firmly holding the 89 trillion won level.
CMA is a representative parking-type product that allows free deposits and withdrawals while also providing short-term interest income. The market interprets the increase in balance as reflecting the expectation sentiment for the stock market, as it is a channel where investment waiting funds stay.
The amount set for domestic stock funds also set a new record. As of the 10th, the amount set for domestic stock funds was 77.4242 trillion won, surpassing 77 trillion won for the first time. Compared to January this year (61.8389 trillion won), more than 16 trillion won of new funds have been inflow in half a year. The increase in the amount set for domestic stock funds means that more investors are seeing the domestic stock market positively and are newly investing funds.
The increase in stock trading activity accounts also supports the investment fever. As of the 10th, the number of stock trading activity accounts reached 91.144817 million, setting a new record. Compared to the beginning of last month (90.4 million), it increased by 1 million, and compared to the beginning of this year (86.4 million), it increased by 5 million.
Experts cite the sharp rise in the stock market and the lowered deposit and savings interest rates as the background for the money move. In a situation where the deposit and savings interest rates of major commercial banks have fallen to the 2% range per annum, funds are moving to the stock market with high expected returns as the KOSPI breaks its annual high every day.
The government's policy support is also stimulating expectation sentiment. As the capital market activation policies introduced by the Lee Jae-myung government are being materialized one by one, expectations are growing. On the 3rd of this month, the 'Commercial Act Amendment' including the expansion of the duty of loyalty for directors passed the National Assembly plenary session. On the 9th of this month, the Democratic Party also proposed a Commercial Act amendment mandating the sale of treasury stocks.
The dominant view is that the inflow of liquidity into the stock market will continue until the second half of the year. As the undervaluation of the domestic stock market is expected to be gradually resolved, it is explained that the buying trend of investors will continue. In addition, the government's supplementary budget and real estate loan regulations are also expected to lead to an inflow of funds into the stock market.
Hwang Se-woon, a research fellow at the Capital Market Research Institute, said, “Currently, the stock market has high expectations for policy improvements, and there is a possibility that the restructuring of corporate governance will become visible,” adding, “In such a phase, we can expect stock prices to rise due to additional liquidity inflows, including foreigners.” He continued, “However, it is difficult to sustain the upward trend with just policy expectations, and ultimately, expectations for corporate performance improvement next year must support it,” explaining that “the government’s supplementary budget can be a material that can have a positive effect on corporate performance.” 
A financial investment industry official said, "The Lee Jae-myung government is actively promoting policies that can lead to the inflow of funds into the stock market instead of real estate," adding, "In this trend, the possibility of further strengthening the inflow of funds into the stock market is high.” hippo@fnnews.com Kim Chan-mi Reporter