SK Hynix and Samsung's Surging Stock Prices Trigger Fund Position Limit Sell-offs, Goldman Sachs Warns of Additional Selling Pressure

Odaily Planet Daily News Global investors are pouring into Samsung Electronics and SK Hynix stocks, but the high stock prices have triggered the 10% single-stock position limit for some funds, forcing passive reductions. It is reported that GAM Investment Management in Zurich and Jupiter Asset Management in Singapore have both adjusted their portfolios to comply with the position limit rules. According to statistics, as of Thursday, global investors had net sold Korean stocks worth $63.6 billion, marking the largest single-month sell-off since 1999.

Goldman Sachs' analyst team pointed out that if the market concentration of Samsung and SK Hynix continues to rise, they may still face additional selling pressure in the future, although most of the forced selling has been completed.