Behind the KOSPI 3000 achieved by ants, the task of’debt investment and short selling’

In the stock market led by institutions and foreigners, the opening of the KOSPI index’s first 3,000 era was led by individual investors.

It is the current stock market in which Donghak ants exert absolute power, but some voices say that it is necessary to prepare for a soft landing after touching the high point as there is a danger signal for downward pressure.

According to the Korea Exchange on the 7th, Donghak ants began to raise the KOSPI index, which was pushed below the 1500 line due to the Corona 19 panic in March last year, and achieved a breakthrough of 3000 points for the first time in history on the previous day.

As the Corona 19 incident rather became an opportunity for individuals, it has now established itself as an axis of the domestic stock market.

When foreigners and institutions sold 2.5 trillion won and 2.5 trillion won respectively in the securities market last year, individuals bought a whopping 47 trillion won, supporting the domestic stock market.

Entering this year, it has been the leading player in the 3000 era by buying more than 3 trillion won in only 3 trading days.

However, it is also worth paying attention to the warning signs that we need to prepare for after the opening of the KOSPI 3000 era.

The so-called’debt investment’ to buy stocks out of debt is the most worrying part.

According to the Financial Investment Association, the amount of money (credit loan balance) borrowed from securities companies for stock investment by individual investors as of the 5th was 19,6241 billion won, which is about to reach 20 trillion won.

This is more than double the level of 9 trillion won a year ago.

The problem is that a significant amount of household loans from commercial banks, as well as short-term funds from securities companies, are flowing into the stock market. Taking this into account, it is estimated that the amount of debt investment will significantly exceed the aggregated credit loan balance.

Currently, the real economy is showing the worst indicators, contrary to the stock market boom.

Accordingly, the government and authorities have loosened liquidity on a large scale and relaxed policies in order to save the real economy in crisis due to Corona 19, but this liquidity is mostly concentrated in the market.

The securities industry welcomes the boom in the stock market, but points to the fact that the unsupported capital pull is inevitable in terms of asset polarization and rapid price adjustment in the face of economic recovery.

The resumption of short selling, which has come three months in the future, is also a big variable.

When short selling resumes, it is difficult to avoid the rapid cooling of the booming market.

It is difficult for the authorities to continue to postpone the period of cessation of temporary short selling.

It is not hard to argue that the net function of’appropriate price formation’ of short selling is absolutely necessary in a market showing a short-term overheating pattern with the resumption of short selling once with the power of Donghak Trading.

An industry insider said, “There is no reason to extend the ban on short selling in a situation where the KOSPI breaks through the 3000 line and continues the bull market. If the authorities leave the short selling ban as it is, it will create a bubble, and if the short selling is resumed, the stock price will fall and the stock market will “It’s hard to avoid confusion, so it won’t be an easy decision.”