Contrary to what many people think, the main force behind the sharp rise in Korean stocks today is foreign investment and individual investors selling in large quantities. The financial behavior reported by Yonhap News Agency: 1. Today, foreign investors net bought over 7 trillion Korean won in Korean stocks, including SK Hynix 3.588 trillion Korean won, Samsung Electronics 2.103 trillion Korean won, SK Square 0.335 trillion Korean won, Samsung Electronics preferred stock 0.263 trillion Korean won, and Samsung Electric 0.222 trillion Korean won The top five stocks totaled approximately 6.51 trillion Korean won, accounting for about 75% of the net purchases by foreign KOSPI in this caliber. This means that today's foreign investment behavior is mainly: Compensate for the low position or short position previously held in storage stocks; Fix the index weights of Samsung Electronics and SK Hynix; Another important signal is that foreign investors have only net bought 92 KOSPI200 futures, while spot purchases have exceeded 7 trillion Korean won. This indicates that today is not simply a short liquidation of index futures, but closer to the real replenishment and spot reconstruction of positions at the stock level. 2. Institutions net purchased approximately KRW 1.18 trillion at KOSPI, including: Net purchases of investment trusts amounted to approximately 1.188 trillion yuan; Private equity funds have net purchases of approximately 0.512 trillion yuan; Net purchase of pension funds is approximately 0.165 trillion yuan; Financial investment institutions sold a net of approximately 0.609 trillion yuan. 3. Retail investors shift from adding leverage when prices fall to borrowing and reducing positions when prices rise On July 31st, retail investors in Korean stocks sold approximately 8.25 trillion Korean won on KOSPI, which is one of the most important structural signals today In the past few days, the behavior of individual investors has undergone significant changes: 1) On July 28th, KOSPI plummeted by 10.84%, with foreign investors selling a net of 4.97 trillion yuan and retail investors buying a net of 4.33 trillion yuan; On that day, retail investors also net bought 14 single stock leveraged ETFs worth approximately 731.5 billion Korean won, among which SK Hynix bought two leveraged ETFs worth approximately 572.3 billion Korean won; 2) On July 29th, retail investors converted to net sales of approximately 1.97 trillion yuan; 3) On July 31st, with a historical rebound, net sales reached 8.25 trillion yuan. This indicates that retail investors are gradually shifting from "using leverage to buy at the bottom every time they fall" to "using rebounds to reduce positions, repay financing, redeem leveraged products, or accept stop losses 4. Today is also the first day that the new regulations for single stock leveraged products in South Korea officially come into effect. The trading volume of leveraged ETFs has significantly decreased; 1) The daily trading volume of 16 single stock leveraged and reverse products was approximately KRW 3 trillion, compared to KRW 12.4 trillion the previous day and KRW 15 trillion on July 29th. 2) The trading volume of KODEX SK Hynix single stock leveraged ETF decreased by 76%, with trading volume dropping from approximately KRW 3.63 trillion to approximately KRW 1.20 trillion. In summary, it is: The market saw a 17.91% increase while retail investors sold 8 trillion Korean won, indicating that foreign investment and institutions have absorbed the vast majority of retail investors' selling, which is much higher than the rebound quality of "retail investors continue to buy, foreign investment continues to sell". At the same time, the trading volume of leveraged ETFs has significantly decreased. Both of these are good signals. Helps the market to further recover. This article is sponsored by @ bitget_zh, titled 'Bitget Buying US Stocks: Instant Entry, Smooth Trading'