TechFlow news, May 30: According to Bloomberg, as global capital continues flowing into AI and semiconductor sectors, Samsung Electronics and SK Hynix saw significant stock price gains. However, the surge in share prices pushed some funds’ holdings of these stocks beyond their internal risk-management limits, forcing them to reduce positions.
Market reports indicate that institutions including GAM Investment Management in Zurich and Jupiter Asset Management in Singapore have adjusted their related holdings to comply with the requirement that no single stock’s weight exceed 10% of their portfolios.
Data shows that, as of this Thursday, global investors collectively net-sold approximately $63.6 billion worth of South Korean equities this month—the largest monthly net outflow since 1999. Market participants believe part of this selling pressure stems from fund rebalancing and position-limit constraints.
In its latest report, Goldman Sachs analysts noted that while most passive sales triggered by position-limit rules may already be complete, further increases in Samsung Electronics’ and SK Hynix’s market capitalizations and index weights could still trigger another wave of passive selling.
Against the backdrop of continuously rising AI compute demand, Samsung Electronics and SK Hynix—global leaders in memory chips—continue attracting strong investor interest. In particular, surging demand for high-bandwidth memory (HBM) products is viewed as a key driver boosting the valuations of both companies. Markets are now closely monitoring shifts in capital flows and the potential impact of passive position reductions on the future trajectory of South Korean tech stocks.
