Citi Downgrades South Korean Stock Market Rating to "Neutral"

BlockBeats News, July 20th, Citigroup has downgraded its rating on the South Korean stock market from "Overweight" to "Neutral" due to recent sharp fluctuations in chip stocks, as the bank seeks to reduce its investment exposure to the artificial intelligence theme.

As a typical example of the frenzy in AI trading, the South Korean KOSPI index has become the best-performing stock market globally this year. However, in recent weeks, the market has experienced significant volatility due to retail investors' enthusiasm for individual stock leveraged ETFs and valuation concerns.

Citigroup still maintains a structurally bullish view on the prospects of the artificial intelligence sector, but has adjusted its stance on the South Korean market to Neutral.