Do you buy only Tesla and Apple?… Seohak ant swept up stocks in China and Japan

$193.4 billion (about 211 trillion won).

This is the amount that domestic investors bought and sold overseas stocks this year. It is nearly five times the previous largest transaction amount last year ($40.9 billion). It is the result of the craze of ‘Seohak ants (overseas stock investor)’ that is struck by ‘Donghak ants.’

They swept overseas stocks when the global stock market, which had plunged after the novel coronavirus infection (Corona 19), showed a strong rebound. In the first half, it mainly invested in US technology stocks, while in the second half, it reached out to Chinese and Japanese stocks. Although the world is wide and there are many stocks, we have summarized the stocks that stood out in Seohak ant’s eyes.

◆Tesla·Apple Shopping’Sollim’=What catches the eye is the’favorite’ for US stocks. According to the Korea Securities Depository on the 30th, the top 10 overseas stocks net bought by domestic investors until the 29th this year are all US stocks. No. 1 is Tesla, an electric vehicle maker in the US. This year’s net purchase alone amounted to $2,9413.7 million (3.2 trillion won). This is thanks to the growth outlook of the electric vehicle market and expectations of a share price rise. Apple rose to the second place with 1,8383.21 million dollars (2 trillion won).

For Seohak Ant, Tesla and Apple are absolute. Two stocks accounted for 25% of the total net purchase of overseas stocks ($19.4 billion). The fact that the ransom price of the two stocks, which are steady sellers for Seohak ants, gained momentum after the news of the par value split in July and August was announced. When the stock is split, the price per share will drop, and the amount of net purchases has risen sharply in anticipation that the stock price will rise as investors flock to it.

Large technology stocks such as online retailer Amazon, and semiconductor companies Nvidia and Microsoft (MS), which acquired UK’s ARM, ranked in the top 5 overseas stocks that received a love call from Seohak Ant.

◆ Corona beneficiary and technology stock ETFs are also popular=Seohak Ant’s’One Pick’ stands out from the American toy company Hasbro. This year’s net purchase was $474 million. The time when the’lions’ of Seohak ants concentrated was from March to May, when Corona 19 was severe. As the beneficiary of Corona 19,’Zipcock’ life is prolonged and demand for toys is expected to increase.

Not only individual stocks, but also smart money on ETFs were not few. ‘Invesco Trust QQQ (INVSCQQQ S1)’, which follows the NASDAQ index, and’ARK Innovation ETF (ARKK)’, which invests in innovative companies such as Tesla, ranked 7th and 11th in net buying, respectively. Seo Jeong-hoon, a researcher at Samsung Securities, analyzed, “It reflects the preference of domestic investors for large technology stocks with outstanding stock prices.”

◆Stocks in China and Japan= The love of technology owners did not select nationalities. Chinese electric car makers Nio and Xiaofeng, listed on the US stock market, are representative. It is interpreted that China has declared an end to internal combustion engines by 2035, and invested in anticipation that the US-China conflict will be reduced if the US Biden government is launched.

The territory for stock investment has expanded to China, Hong Kong and Japan. Only Chinese stocks net bought by domestic investors this year amounted to $1,128.16 million (1.23 trillion won). It is more than 2.5 times that of last year. Stocks in Hong Kong and Japan were also bought for $95.35 million (985 billion won) and $15.05 million (1685 billion won), respectively.

Chinese semiconductor company SMIC (13th) was the most bought by Seohak ants in overseas stock markets outside the US. The company is listed on the Hong Kong and Chinese stock markets, and Seohak Ant aggressively bought Hong Kong stock.

In the case of Japanese stocks, toy and game company Bandai Namco (15th), chemical company Showa Denko (19th), and content company Kadokawa (20th) ranked in the top 20. Heo Jae-hwan, a researcher at Eugene Investment & Securities, said, “In the second half of this year, buying tax was inflow to Chinese and Japanese stocks, mainly untact (non-face-to-face) stocks.”

◆Annual rate of over 1000%= The rise in stock prices of companies bought by Seohak Ant is surprising. Tesla, which is called’the stock of the world’, rose more than 700% compared to the beginning of the year. Compared to the share price increase rate (41.8%) of Samsung Electronics, a domestic “large market stock,” during the same period, it is a huge gap.

Nio’s return on investment was four digits. If you invested at the beginning of the year, your return would reach 1140%. Apple (85.0%) and Amazon (79.87%), which bought a lot of Seohak ants, were close to 80%, and Nvidia exceeded 110%. On the other hand, if you invested in Hasbro (-11.35%) or Boeing (-35.12%), you will lose some of the principal. U.S. hydrogen truck maker Nikola’s share price, caught up in a “fraud controversy,” was once close to $80 a share, but now it is almost a fifth.

“Overseas stocks have to be invested in local currency, so there is a risk of currency loss,” said Cho Byeong-hyun, a researcher at Yuanta Securities.

Reporter Hwang Eui-young [email protected]