Foreign Investors Dump Samsung Electronics and SK hynix, Buy Alibaba and Tencent Again

[Financial News] Global investors are reducing their exposure to Korean semiconductor stocks, which led this year's Artificial Intelligence (AI) rally, while moving to buy back Hong Kong tech stocks they had shorted.
According to U.S. media reports on the 29th, the 20-trading-day correlation between KOSPI and the Hang Seng TECH Index in Hong Kong has turned negative again. When one index rises, the other falls, showing an inverse relationship. Market watchers interpret this as a sign that foreign investors are unwinding their positions.
So far this year, global funds have used a strategy of shorting Hong Kong tech stocks such as Alibaba Group and Tencent to raise money for buying Korean semiconductor shares, including Samsung Electronics and SK hynix.
However, U.S. media outlets say the two markets have recently been moving in opposite directions as investors sell Korean semiconductor stocks while also covering short positions in Hong Kong tech shares.
The trend was also clear in Asian markets on the day. SK hynix plunged more than 15%, while Samsung Electronics fell more than 8%. LG Innotek and Seoul Semiconductor also dropped more than 15% and 10%, respectively.
In Japan, KIOXIA Corporation fell 14%, Tokyo Electron dropped 12.6%, and SoftBank Group declined 10%. On the mainland China market, the ChiNext 300 Index fell 0.63%, while the Hang Seng China Semiconductor Index in Hong Kong dropped more than 6%.
By contrast, Chinese internet companies listed in Hong Kong showed strength. Tencent and Meituan each rose by around 3%, while Alibaba Group, Baidu, and Kuaishou also advanced.
[email protected] Hong Chaewan Reporter