Chip Stock Rebound Fails to Ease Concerns, Short Interest in Korean Market Keeps Rising

BlockBeats News, August 16. Despite a significant rebound in the stock market from the panic triggered by the crash of chip stocks and AI-related stocks, data shows that the scale of stock short selling is still increasing. According to data released by the Korea Exchange on Sunday, as of this Tuesday, the outstanding short-selling balance in the Korean stock market is approximately 19 trillion Korean won (about $13.4 billion), an increase of 2.27 trillion Korean won from the end of last month's 16.73 trillion Korean won, representing a 14% increase. At the end of February this year, the short-selling balance was 15 trillion Korean won, dropped to 12 trillion Korean won in early March, and then rose to 23 trillion Korean won in early June.

So far this month, the Korean benchmark KOSPI index has risen by 6%, while the tech-heavy KOSDAQ index has surged by 20%. Last month, the Korean stock market experienced a sharp decline due to market concerns about the profit potential of AI-related investments (which could weaken chip demand). However, investors remain concerned about the rapid price increase in the short term and are uncertain about whether the chip industry has peaked.