Despite the recent slowdown in the KOSPI index, the’debt investment’ that individuals owed to buy stocks is breaking the record high every day.
According to the Korea Financial Investment Association on the 18th, the credit loan balance of individual investors as of the 15th recorded 21,2962 billion won, an increase of 13.6 billion won from the previous day.
It is an all-time high with an increase of 10 consecutive trading days.
Compared to the end of last year (19,222.1 trillion won), it expanded more than 2 trillion won this year alone.
Credit loan balance is the amount that individual investors borrow from securities companies to invest in stocks.
Usually, if the stock price is expected to rise, the credit loan balance of individual investors also increases.
After rising to 3,149.93 on the 14th, the KOSPI fell by more than 2% for two consecutive days and fell to 3,013.93 on this day.
As new loan balances continue to increase, brokerage firms have also stopped buying credit loans to control excessive credit loan expansion.
Daishin Securities[003540]Stopped buying credit loans from that day, NH Investment & Securities[005940]It also announced that it will stop from the 21st.
Samsung Securities ahead[016360]And Eugene Investment & Securities[001200]Also, they stopped buying credit loans on the 13th and 15th, respectively.
Meanwhile, as KOSPI volatility increased, the volume of counter trading also increased. According to the Financial Investment Association, on the 14th, the volume of counter-trading accounts for unacceptable transactions reached 38.8 billion won, the largest in 12 years since October 27, 2008, at the time of the global financial crisis.
Counter-trading is when the value of the stock (credit transaction) purchased by borrowing money from a securities company falls below a certain level or fails to pay the settlement amount for the stock (accepted transaction) purchased through a foreign transaction, the securities company is forcibly disposing of the bond It is a way to recover.
Some stocks allow customers to place buy orders as long as they hold only 20-40% of the margin of the order. However, if the remaining amount (receivables) is not filled within the settlement date (2 trading days), it is subject to counter trading.
Stock prices believe that unacceptable transactions that missed the point of sale became targets of counter-trading as the high volatility market continued without recovering the peak after the KOSPI broke through the 3,200 line on the 11th.