◆Ajou Economic Major News
▷[Exclusive][Debt Investment Bill] Margin trading reaches 4.8 trillion won, doubling last year's total in just seven months.
- According to data submitted by the office of Democratic Party lawmaker Kang Jun-hyun from the top 10 comprehensive financial investment firms (Korea Investment, Mirae Asset, NH Investment, Meritz, Samsung, KB, Shinhan Investment, Kiwoom, Hana, and Daishin Securities), the total amount of margin trading by individual investors from January to July this year reached 4.819 trillion won.
- This figure is nearly double last year's total margin trading amount of 2.4642 trillion won and surpasses the highest annual amount in the past five years, which was 3.904 trillion won in 2021.
- By type, margin trading accounted for 2.9281 trillion won, making up more than half of the total. This is more than double last year's annual figure of 1.4152 trillion won. Margin trading and collateral loan transactions also totaled 1.8909 trillion won, significantly exceeding last year's annual amount of 1.0491 trillion won.
- There have been a considerable number of accounts that were liquidated after losing all principal. From January to July this year, 6,170 accounts were liquidated with total losses of 31.2 billion won, more than double last year's total liquidation amount of 15.3 billion won.
- The surge in margin trading is attributed to increased volatility in the stock market this year. The KOSPI index has fluctuated by an average of 2.9% daily, nearly three times higher than last year's average of 1%.
◆Major Reports
▷Will shareholder returns become a factor in the Korean market? [KB Securities]
- Many investors are pondering whether shareholder returns, highlighted by announcements from semiconductor companies, can drive stock prices higher. Looking at examples from Apple and TSMC, shareholder returns can indeed be a powerful tool for sustained stock price growth, provided there is clear trust.
- Apple paid dividends from 1987 to 1995 but halted them in 1996 due to poor sales. When Steve Jobs returned as CEO in 1997, he focused on accumulating cash without changing that policy, which continued until his death in 2011.
- The shift came with Tim Cook's appointment as CEO in 2012, who resumed dividends and share buybacks, initially for employee compensation. The active use of share buybacks for shareholder returns began in 2013.
- Amid a slowdown in smartphone growth and a drop in stock prices from $25 to $15, a large share buyback announcement helped trigger a rebound despite lowered guidance.
- The U.S. case shows that consistent increases in shareholder returns are more favorably viewed in the market than one-time large distributions.
◆Key Disclosures After Market Close (September 1)
▷Shin Dong-bin sells 118,000 shares of Lotte Shopping on the market.
▷Hanwha Ocean secures orders for three ultra-large gas carriers worth 477.8 billion won.
▷Samsung Electro-Mechanics signs a supply contract for AI-use MLCCs worth 1.0722 trillion won with big tech companies.
▷Yuhan Corporation supplies raw pharmaceuticals to a global pharmaceutical company worth 131.1 billion won.
◆Fund Trends (as of August 31, excluding ETFs)
▷Domestic equity: -3.213 trillion won
▷Overseas equity: +177.8 billion won
◆Today's Schedule (September 2)
▷Korea: Consumer Price Index (August)
▷U.S.: Automatic Data Processing (ADP) Private Employment Report (August)
* This article has been translated by AI.
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