CITIC Securities pointed out that at present, retail leverage in South Korea has been rapidly removed, but the observed indicators show that the risk has not been fully cleared. The brokers' financing balance was reduced by 10% in a single day on July 31, the biggest drop during the year. At the same time, retail investors closed their positions on July 30 and 31 in a single day and the liquidation amount still exceeded 100 billion won, and the liquidation rate was still at a high level of 7% to 8%, far higher than the 1% level in a stable market. The size of the Korea Equalization Fund is limited, and there is a moral risk in entering the Korean National Pension Fund. It is expected that the market volatility will remain at a relatively high level in the future.

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