Goldman Sachs Quick Review of Korean Stocks: After KOSPI rises to 7000 points, the next resistance looks at 7700 According to BlockBeats, on July 23rd, Goldman Sachs announced in its latest MarketFeed review that foreign investors are returning to the Korean market. KOSPI rose 4.4% on Thursday, closing above 7000 points, with foreign investors making net purchases for the fourth consecutive trading day. This week, the net inflow of foreign investment reached 3.8 billion US dollars, setting a record for the largest single week net foreign investment purchase on record. The buying frenzy is highly concentrated on AI and storage chains. Goldman Sachs stated that approximately 87% of foreign investment is directed towards the technology sector, with about 91% of nominal transactions in the technology sector concentrated in Samsung Electronics and SK Hynix. This means that the core of overseas funds replenishing South Korean assets is still betting on the global AI capital expenditure to drive the memory cycle. This round of return occurred after the intense deleveraging in the Korean market. Previously, KOSPI fell by about 22% from its high point this year, and Samsung and SK Hynix became the main battlefield for foreign investors to sell. Goldman Sachs pointed out that the proportion of foreign ownership in the Korean semiconductor sector has dropped to 50%, which is 1.9 standard deviations lower than the historical average since 2000, and the pressure on positions has significantly eased. Leverage risk is also cooling down. The report states that securities firms have improved their swap capacity and financing rates have significantly decreased compared to the previous month; Retail investors' accounts receivable for additional margin decreased to 1.4%, returning to the historical average; The balance of margin loans has dropped from a high of $25 billion to $22 billion. Previously, the market was concerned about selling pressure from the rebalancing of South Korea's National Pension NPS, but in the past 14 trading days, the pension fund has net bought $19.1 million at KOSPI, with a cumulative net buy of $203.7 million from July 14th to 21st. Fundamental support comes from AI capital expenditures. Goldman Sachs mentioned that Alphabet's revised spending target of $205 billion, as well as OpenAI's planned $750 billion cloud spending, may bring multi-year revenue visibility to Korean chip manufacturers. The market will focus on whether Meta, Microsoft, and Amazon will follow suit and increase capital expenditures. From the market perspective, the rebound in South Korea is also synchronized with the global chip sentiment recovery. The South Korean stock market rebounded significantly earlier this week, driven by semiconductors. Yonhap reported that KOSPI rose 3.56% on July 21, led by Samsung and SK Hynix; WSJ also mentioned that South Korea's economy performed better than expected in the second quarter, with chip exports being an important support. Technically speaking, Goldman Sachs previously suggested that 6800 points was the key support for KOSPI's 38.2% Fibonacci retracement. After stabilizing near this position, the index rose again to 7000 points, and MACD began to rise. The RSI is about 44.6 and has not yet entered the overheating zone. The next resistance level given by Goldman Sachs is 7700 points, corresponding to approximately 7.8% upside potential.