October 06, 2008 09:44
Since the U.S. financial crisis hit, foreign investors have been pulling out the largest amount of money among major Asian bourses from Korea.
According to the Korea Center for International Finance on Sunday, net selling by foreigners topped US$14.68 billion from June to September, way ahead of Taiwan, India, Thailand, the Philippines and Indonesia,. The KCIF is an agency that was established right after the financial crisis in the late 1990s to gather and analyze information on the international financial markets.
In the Taiwanese and Indian stock markets, net selling by foreign investors totaled $11.27 billion and $5.31 billion. Foreigners also pulled out $3.314 billion from Thailand, $197 million from the Philippines, and $196 million from Indonesia.
Oh Seok-tae, an economist with Citibank Korea, said, "From a foreign investor’s point of view, Asian markets are regions for investment of risk assets. Therefore, these markets are where funds are in short supply, and foreigners pull out money first when they need cash. And they often start with Korea given its big size and ample liquidity."
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