Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<ul>
<li>On Friday 10 March, Svb Financial (SIVB US) suddenly collapsed, becoming the largest bank to fail in the United States since the 2008 financial crisis.</li>
<li>In our view, the collapse of SVB Financial will likely have a negative near-term impact on the Korean banks. </li>
<li>Three ways that this will negatively impact Korean banks include risk-off investment sentiment, greater excuse to hold on to cash by Korean banks, and lower interest rate spreads. </li>
</ul>


On Friday 10 March, Svb Financial (SIVB US) suddenly collapsed, becoming the largest bank to fail in the United States since the 2008 financial crisis.
In our view, the collapse of SVB Financial will likely have a negative near-term impact on the Korean banks. 
Three ways that this will negatively impact Korean banks include risk-off investment sentiment, greater excuse to hold on to cash by Korean banks, and lower interest rate spreads. 


Collapse of Silicon Valley Bank (SVB) - Impact on Korean Banks

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of KRX stocks as of Aug 7th. The aggregated holding was USD1,463.9bn.</li>
<li>We estimate that foreign flows to be inflows of USD548mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in Samsung Electronics, SamsungElecMech, Samsung Elec (PREF), SK Hynix, Celltrion.</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Aug 7th. The aggregated holding was USD1,463.9bn.
We estimate that foreign flows to be inflows of USD548mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in Samsung Electronics, SamsungElecMech, Samsung Elec (PREF), SK Hynix, Celltrion.


KRX Foreign Holding Weekly (Aug 7th): Samsung Electronics, SamsungElecMech, Samsung Elec (PREF)

Cross Asset Strategy

<ul>
<li>Despite differences in views on the legacy of Abenomics, many people agree that Abenomics played a key role and was a clear tipping point for corporate governance improvements in Japan.</li>
<li>Likewise, we believe Yoonomics will follow similar steps and make significant efforts to improve corporate governance reforms in Korea. </li>
<li>So far in 2023,<strong> CORPORATE ACTIVISM</strong> has been <strong>THE MOST IMPORTANT TOPIC</strong> in Korea's equity markets. </li>
</ul>


Despite differences in views on the legacy of Abenomics, many people agree that Abenomics played a key role and was a clear tipping point for corporate governance improvements in Japan.
Likewise, we believe Yoonomics will follow similar steps and make significant efforts to improve corporate governance reforms in Korea. 
So far in 2023, CORPORATE ACTIVISM has been THE MOST IMPORTANT TOPIC in Korea's equity markets. 


Abenomics Vs Yoonomics: Tipping Points of Corporate Governance Reforms in Japan and Korea

<ul>
<li>We analysed the earning revision of component stocks of MS-South Korea in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on KAL, SK Hynix, LG Display, SK Innovation, SKSQUARE, Shinhan Group, KB Financial, Samsung Electronics.</li>
</ul>


We analysed the earning revision of component stocks of MS-South Korea in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on KAL, SK Hynix, LG Display, SK Innovation, SKSQUARE, Shinhan Group, KB Financial, Samsung Electronics.


MS-South Korea Index Earning Revision (Jul): KAL, SK Hynix, LG Display, SK Innovation, SKSQUARE

<ul>
<li>We analyzed the changes in foreign holdings of KRX stocks as of Jul 31st. The aggregated holding was USD1,567.2bn.</li>
<li>We estimate that foreign flows to be outflows of USD5,792mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in SK Hynix, Samsung Electronics, SamsungElecMech, SKSQUARE, SKTelecom.</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Jul 31st. The aggregated holding was USD1,567.2bn.
We estimate that foreign flows to be outflows of USD5,792mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in SK Hynix, Samsung Electronics, SamsungElecMech, SKSQUARE, SKTelecom.


KRX Foreign Holding Weekly (Jul 31st): SK Hynix, Samsung Electronics, SamsungElecMech, SKSQUARE

South Korea

Shinhan Financial Group Co., Ltd., a holding company, provides a full range of consumer and commercial banking-related financial services.  The company's main businesses include banking, securities brokerage, trust banking, and assets management to individuals, businesses, and other financial institutions.

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Shinhan Financial (055550 KS)

Collapse of Silicon Valley Bank (SVB) - Impact on Korean Banks

The collapse of SVB Financial will negatively impact Korean banks due to risk-off investment sentiment, greater excuse to hold on to cash by Korean...

Douglas Kim

KRX Foreign Holding Weekly (Aug 7th): Samsung Electronics, SamsungElecMech, Samsung Elec (PREF)

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in Samsung Electronics, SamsungElecMech, Samsung...

Ke Yan, CFA, FRM

Abenomics Vs Yoonomics: Tipping Points of Corporate Governance Reforms in Japan and Korea

Similar to how Abe left a legacy of significant improvements to corporate governance reforms in Japan, Yoon is also likely to seek a major...

Douglas Kim

MS-South Korea Index Earning Revision (Jul): KAL, SK Hynix, LG Display, SK Innovation, SKSQUARE

We analyzed MS-South Korea's consensus for Jul 2026 and highlighted changes of EPS in KAL, SK Hynix, LG Display, SK Innovation, SKSQUARE, Shinhan...

Ke Yan, CFA, FRM

KRX Foreign Holding Weekly (Jul 31st): SK Hynix, Samsung Electronics, SamsungElecMech, SKSQUARE

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in SK Hynix, Samsung Electronics, SamsungElecMech,...

Ke Yan, CFA, FRM

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52-week Range

Market Cap (USDm)

P/E

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