Afternoon A50 surges straight up, Asia-Pacific markets collectively rally

Odaily Odaily News: After the market opened this afternoon, South Korea's KOSPI index staged a "deep V" rebound, continuously climbing, once surging over 1% after previously dropping over 5%. Samsung Electronics rose over 4%. Japan's stock market also followed suit, turning positive. The A50 index surged directly upwards, and overseas US stock futures also turned green. Analysts believe two pieces of positive news stimulated this rally: first, South Korea's market-stabilizing measures; second, large-scale buying of A-share ETFs.

From the perspective of market linkage structure, the South Korean government's actions were likely the main driver. Looking at the A-share market angle, data from CSCI Financial Engineering shows that on July 13, core ETFs tracking the three major indexes saw significant net inflows. Among them, the CSI 300 ETF saw an inflow of 84.93 billion yuan; the CSI 500 ETF saw an inflow of 73.52 billion yuan; and the CSI 1000 ETF saw a massive increase of 119.23 billion yuan. This could imply that the current price level is also one recognized by large capital. (Securities China)