AI Leverage Betting Concerns Intensify, South Korean Stocks Plunge 5%

Odaily reported that South Korea's KOSPI index fell 5%, with investors liquidating positions related to artificial intelligence trades. The index is extending a four-week losing streak, now down 28% from its record high on June 22. This sell-off highlights growing investor anxiety over the market's increasing reliance on leveraged bets on AI chipmakers. South Korea, which has served as a key barometer of the AI boom's enthusiasm, is now feeling the downward pressure as market sentiment turns negative.

"Although South Korea remains a preferred market in our allocation model, given the ongoing market volatility, we have downgraded its rating from overweight to neutral," Citigroup analysts stated, maintaining their target of 10,000 points for the KOSPI index. (Jin Shi)