'Foreign Securities Investment Trends of Major Institutional Investors in Q3'
Overseas Securities Investment Balance Increases for the Fourth Consecutive Quarter
The balance of overseas securities investments by institutional investors in South Korea increased by $21.96 billion during the third quarter. This was due to valuation gains from rising stock prices and falling interest rates in major countries, along with an expansion in net investments.
According to the "2024 Q3 Foreign Currency Securities Investment Trends of Major Institutional Investors" released by the Bank of Korea on the 29th, the balance of foreign currency securities investments (at market value) by institutional investors such as foreign exchange banks, asset management companies, securities firms, and insurance companies in South Korea stood at $427.41 billion at the end of September, marking an increase of $21.96 billion during the third quarter. This increase was larger compared to the $8.51 billion rise in the second quarter.
The balance of overseas securities investments by institutional investors has been steadily increasing for four consecutive quarters, following a $6.4 billion decrease in Q3 last year, with increases of $20.71 billion in Q4, $9.18 billion in Q1 this year, and $8.51 billion in Q2.
This is attributed to valuation gains from foreign stocks and foreign bonds due to rising stock prices and falling interest rates in major countries, along with an expansion in net investments.
By product, both foreign stocks ($12.58 billion) and foreign bonds ($7.85 billion) increased significantly.
Foreign stocks increased due to valuation gains from rising stock prices in major countries and additional net investments mainly by asset management companies. The balance of foreign stock investments reached $227.46 billion, increasing by $12.58 billion during the third quarter.
Foreign bonds increased by $7.85 billion due to valuation gains from falling interest rates in major countries and an expansion in net investments.
Korean paper issued abroad by domestic financial institutions or companies increased by $1.53 billion compared to the end of the previous quarter, mainly led by securities firms.
By type of institutional investor, asset management companies ($13.77 billion), insurance companies ($4.51 billion), foreign exchange banks ($2.09 billion), and securities firms ($1.59 billion) all showed increases.
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