After Mainland Chinese Investors Were Only Allowed to Sell US Stocks: Nasdaq Pulls Back 10%, Korean Index Drops Nearly 40%
7x24h News
After Mainland Chinese Investors Were Only Allowed to Sell US Stocks: Nasdaq Pulls Back 10%, Korean Index Drops Nearly 40%
When mainland investors were explicitly restricted from continuing to purchase US stocks, US tech assets had already traded into historical high ranges. During this period, the storage semiconductor sector also experienced a more significant drawdown.
Navigating Web3 tides with focused insightsTechFlow news, July 29. Previously, on May 22, the China Securities Regulatory Commission announced serious investigations into illegal cross-border operations by institutions such as Tiger, Futu, and Longbridge, with eight departments simultaneously launching a crackdown on illegal cross-border securities business. For mainland investors, US stock trading permissions were switched to "sell-only," with existing users only able to sell holdings and transfer out funds.
At that time, the market joked on social media that this arrangement was a "top-escape signal" given by the state.
According to Hyperinsight monitoring, during the hour the announcement was released, XYZ100 on Hyperliquid traded between 29,479 and 29,578 points; on the same day, the Nasdaq 100 Index and XYZ100 prices were at the same level during the same period.
Subsequently, the Nasdaq 100 continued to rise slightly, reaching a high of 30,762.20 points on June 3, setting a new historical high. Afterwards, Tiger, Longbridge, and Futu uniformly set June 12 as the execution node for business adjustments; mainland existing users retained only selling, closing positions, and fund transfer functions, and mainland US stock traders officially turned to one-way exit.
In other words, when mainland investors were clearly restricted from continuing to buy US stocks, US stock tech assets had already run to the historical high range; during this period, the storage semiconductor sector also experienced a larger drawdown.
As of press time, XYZ100 was reported at about 27,664 points, cumulatively falling about 10.1% from the historical high of 30,771 points; compared to when the regulatory announcement was released on May 22, it has also fallen about 6.2%.
Supplementary data: The adjustment in the South Korean market was even more severe. KOSPI fell from 7,847.71 points on May 22 to currently about 5,550 points, with a cumulative decline close to 29%; compared to the record closing high created in June, the drawdown is close to 39%.
