Entertainment stocks, which had undergone a correction amid uncertainty over the lifting of China's ban on Korean pop culture, rebounded. It appears to be thanks to expectations that investment sentiment will recover based on this year's third-quarter (July–September) results.
HYBE shares were trading at 283,500 won on the KOSPI market at 9:30 a.m. on the 13th. The stock rose 11,000 won (4.04%) from the previous trading day.
At the same time, shares of other entertainment stocks such as YG Entertainment, YG PLUS, and SME were traded at higher prices than the previous trading day.
Entertainment stocks had continued their upward trend this year on hopes for the lifting of the ban on Korean pop culture, but they underwent a correction as concerts by Korean singers in China were canceled one after another. However, as the Asia-Pacific Economic Cooperation (APEC) summit, which Chinese President Xi Jinping and others will attend, approaches, investors appear to be returning.
Lee Hwa-jung, an analyst at NH Investment & Securities, said in a report that "uncertainty related to Korea–China relations continues, and concerns over whether concerts will resume have expanded again, weakening the entertainment industry's momentum," but added that "given structural earnings growth and mid- to long-term growth drivers, fundamentals remain solid, making a rebound a matter of time."