Concerns of a Stock Market Crash in July Amid Rebalancing Fears

◆Ajou Economy Major News
▷"Concerns of a Stock Market Crash in July?" Fears of Rebalancing Spread... Analysts Say "Risk of a Sell-off is Low"
- Concerns over foreign net selling and the rebalancing of the National Pension Service are increasing instability in the domestic stock market.
- On June 24, the Korea Exchange reported that the KOSPI index fell 9.9% in the previous trading session, prompting individual investors to engage in bargain hunting. Foreign investors sold a net 4.6 trillion won, contributing to the downward pressure. The KOSPI 200 Volatility Index (VKOSPI), often referred to as Korea's fear index, surged to 95.45 during trading, marking its highest level of the year.
- However, analysts suggest that even if the National Pension Service adjusts its asset allocation, the likelihood of a large-scale sell-off occurring all at once is low.
- Experts believe that the recent foreign selling will have a limited impact on the domestic stock market, arguing that it is not indicative of a decline in the market's value.

◆Major Reports
▷Bank of England Releases Draft Regulations for Stablecoins [Kiwoom Securities]
- As the issuance of stablecoins continues to rise, the Bank of England announced a policy statement and draft rules regarding the regulation of pound sterling stablecoins on June 22 (local time). The new regulations are viewed as less stringent compared to the proposals released in November 2025.
- According to the disclosed details, instead of imposing limits on the amount of stablecoins held by individuals or institutions, the total issuance limit for each stablecoin will be capped at 40 billion pounds, and the proportion of UK short-term government bonds in reserve assets will be increased from a maximum of 60% to 70%.
- This appears to reflect some industry criticism that the previous regulatory proposals were excessively conservative compared to those in the U.S. and EU. However, user protection measures, such as a 24-hour redemption requirement and liquidity standards, will remain in place.
- The Bank of England plans to gather feedback on this matter until September 22. According to some foreign media reports, the regulatory framework is expected to be finalized by the end of 2026, allowing for the issuance and use of pound sterling stablecoins in the UK starting in 2027.

◆Key Announcements After Market Close (June 24)
▷ Samyoung Electronics designated as an unreliable disclosure company, fined 10 million won.
▷ DRTec decides to consolidate shares with a par value of 100 won into 500 won.
▷ KH Vatech announces a plan to acquire treasury shares worth 2.4 billion won.
▷ Osstem signs a trust contract for the acquisition of treasury shares worth 3 billion won.
▷ Jostem decides to acquire treasury shares worth 1.6 billion won.

◆Fund Trends (as of June 23, excluding ETFs)
▷Domestic equity: -222.2 billion won
▷Overseas equity: -27.1 billion won

◆Today's Key Schedule (June 25)
▷United States: GDP growth rate (Q1 final), PCE price index (May), personal income & spending (May), durable goods orders (May)

* This article has been translated by AI.