Global Market: South Korea’s Kospi Plunges over 7% as Chip Stocks Tumble on CXMT Concerns
- CXMT President Cao Kanyu said the Chinese chipmaker plans to launch a smaller-area, higher-capacity memory chip using 4F² architecture before year-end, though the claim has not been independently verified.
- South Korea’s KOSPI fell more than 7%, while shares of Samsung Electronics and SK Hynix each dropped more than 7%.
- The Korea Exchange temporarily halted program sell orders after the KOSPI 200 futures index fell 5.08%.
- Analysts cited concerns about AI demand, profitability, stock valuations, and whether CXMT can produce the technology commercially.
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Asian Chip Stocks Fall as China’s AI Advances Fuel Competition Concerns
Asian stock markets dropped to their lowest levels in more than two months as investors reconsidered the profitability of artificial intelligence investments. Advances by Chinese memory-chip maker ChangXin Memory Technologies heightened concerns about growing competition, while government bonds attracted investors seeking safer assets.
There were no significant negative factors on the 13th capable of bringing down the KOSPI. The U.S. bond market, which had been pressuring global stock markets, took a breather on the 12th (local time), while international oil prices are fluctuating at levels they had surged to in the middle of last month. The fact that China's Changxin Memory (CXMT) announced its technological pursuit amplified concerns about intensifying competition in the sem…
BT
berlingske.dkA piece of news from China may have contributed to the decline in the stock market of leading chip manufacturers from South Korea.
On the 13th, the KOSPI index closed at 6,035.35, down 5.46%, due to a sell-off of 5 trillion won by foreign investors. Investment sentiment was dampened by the technological advancements of China's CXMT and difficulties in capital raising for semiconductor companies. Overall market volatility increased as major stocks, including Samsung Electronics and SK Hynix, plummeted, triggering sell-side circuit breakers.
South Korea's Kospi tumbles over 6% as CXMT concerns hit chip stocks
South Korea's Kospi slid sharply and triggered a temporary trading curb as chip stocks fell on concerns over CXMT's rapid advances. The sell-off spread across sectors, while a weaker won, foreign outflows and lower bond yields reflected broader market stress.
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