CITIC Securities: The deleveraging of the Korean stock market has not yet been completed.

CITIC Securities pointed out that currently, retail investor leverage in South Korea has rapidly decreased, but the observed indicators show that risks have not been fully cleared. The financing balance of brokerages shrank by 10% on July 31, marking the largest decline this year, indicating that on-site leverage is still rapidly being reduced. Meanwhile, the amount of forced liquidation for retail investors on July 30 and 31 still exceeded one trillion won, and the liquidation rate remained at a high level of 7%8%, far above the 1% level seen in stable market conditions. The scale of South Korea's stabilization fund is limited, and the entry of the National Pension Service poses a moral hazard. It is expected that market volatility will remain at a relatively high level in the future.