HSBC upgrades South Korea stock market rating to overweight

Odaily News: HSBC analysts, led by Herald van der Linde, Head of Asia-Pacific Equity Strategy at HSBC, stated that the recent pullback in the South Korean stock market has effectively cleared a significant amount of excess leverage. The bank has upgraded its rating on the South Korean stock market from neutral to overweight, noting that while volatility remains elevated, it has retreated from its peaks. HSBC also noted that if the South Korean stock market continues to perform strongly, active funds may find it increasingly difficult to increase exposure without breaching concentration limits, which could lead to sustained selling pressure. However, as long as domestic demand for equities remains robust, this should not pose a major obstacle. (Cailian Press)