At the end of last year, the amount of U.S. stocks held by overseas retail investors exceeded $110 billion, but it has recently fallen to around $90 billion. It is interpreted that the decrease in holdings is due to the increased volatility in the New York stock market this year. Overseas retail investors have begun to turn their attention to foreign markets, such as Hong Kong, which have been relatively neglected.
According to the Korea Securities Depository on the 16th, as of the 13th, the amount of U.S. stocks held by individual investors in South Korea was recorded at $93.8 billion (approximately 136.33 trillion won). This is a decrease of 9.7% compared to last month (when it was $102.9 billion, approximately 149 trillion won).
The amount of U.S. stocks held had shown an increasing trend as the U.S. stock market rose, but it has recently fallen below $100 billion. The amount was $74.8 billion (approximately 108.53 trillion won) in March last year, and it increased to $112.1 billion (approximately 162.94 trillion won) by December last year. Since then, it had continued to record above $100 billion until March when the rapid increase in holdings began to decline.
This trend is also observed in individual U.S. stocks. In the case of Tesla, the amount of stocks held at the end of last year was $24.5 billion, but on the 13th, it decreased to $15.5 billion, a drop of 37%. NVIDIA saw a decrease from $12.1 billion to $10.5 billion, a 13% reduction. Apple also recorded a decrease of $1 billion, with holdings at $3.9 billion. Microsoft and Palantir also showed a reduction in stock holdings to around $300 million to $400 million.
The recent uncertainties triggered by the tariff war initiated by the United States and concerns over economic recession are believed to have worsened investor sentiment. Recently, major indices in the U.S. stock market, including the Dow Jones Industrial Average, the Standard & Poor's (S&P) 500 index, and the NASDAQ Composite Index, have recorded declines of around 10% compared to their previous peaks, raising concerns that the market may have entered a correction phase.
Research Institute analyst Ha Geon-hyung noted, "Up to January, when economic indicators from last year were announced, concerns about an overheating economy were raised due to stronger than expected economic trends, but since February, when this year's indicators began to be announced, there have been downward adjustments in economic outlooks, with concerns about recession being raised as well."
He further pointed out, "The main culprits of the recession include policies related to anti-immigration and high tariffs led by the Trump administration, along with the uncertainties arising from them."
On the other hand, the amount of stocks held by domestic investors in Hong Kong and Japan has increased. The amount of stocks held in Hong Kong rose to $2.38 billion (approximately 35 trillion won), an increase of 8.70% compared to the end of the previous month. Japan also increased by 0.38% during the same period, reaching $4.4 billion (approximately 64 trillion won).
Among the top 50 overseas stocks that domestic investors have net purchased this month are Xiaomi ($40.25 million), Beijing ($37.41 million), BYD ($28.51 million), Alibaba ($17.37 million), and SMIC ($13.47 million), all listed on the Hong Kong Stock Exchange.
Research Institute analyst Baek Gwan-yeol said, "The Hong Kong H index has risen by 23% since the beginning of the year, recording the highest revenue among major country stock markets," adding, "The current investor sentiment towards the Chinese stock market is considered to be intact."