Mainland Investors Only Allowed to Sell US Stocks: Nasdaq Retreats 10%, KOSPI Plunges Nearly 40%

BlockBeats News, July 29th. Previously, the China Securities Regulatory Commission cracked down on Tiger Brokers, Futu, and other cross-border brokers. The Nasdaq hit a high of 30,762 points. Are mainland investors signaling "sell only" as a top signal?

According to Hyperinsight monitoring, during the hour of the announcement on May 22nd, the XYZ100 on Hyperliquid traded between 29,479 and 29,578 points. On the same day, the Nasdaq 100 Index and XYZ100 were at the same price level.

Subsequently, the Nasdaq 100 continued to rise and reached a peak of 30,762.20 points on June 3rd, hitting a new all-time high. Afterwards, Tiger Brokers, Chang'An, and Futu all set June 12th as the date for business adjustment execution. Mainland existing users in mainstream brokerages were left with only the functions of selling, closing positions, and withdrawing funds. The majority of mainland U.S. stock traders shifted to one-way exit.

During the 20-day window, mainland investors were explicitly restricted from further buying U.S. stocks through mainstream brokerages. U.S. tech assets had already reached historical highs during this period, and the storage semiconductor sector also experienced a significant pullback.

As of the time of writing, the XYZ100 is reported to be around 27,664 points, a cumulative drop of about 10.1% from the historical high of 30,771 points. Compared to the regulatory announcement on May 22nd, it has also fallen by about 6.2%.

Additional data: The adjustment in the South Korean market is even more severe. The KOSPI has fallen from 7,847.71 points on May 22nd to around 5,550 points, a cumulative decline of nearly 29%. Compared to the record closing high in June, the retracement is close to 39%.