Asian Retail Investors: Seohak Ants to NISA and SIPs — 2026-10-22
South Korean retail investors are aggressively shifting capital from the volatile KOSPI to US stocks, with net buying in US equities tripling in early October despite record leverage losses. In Japan, new NISA accounts surged among those aged 50, while India saw record SIP inflows of ₹32,490 crore, though foreign withdrawals continue to pressure markets. China’s margin balances have dropped for seven consecutive sessions, signaling deleveraging, while Taiwan’s ETF beneficiary numbers hit a record high.
Asian Retail Investors: Seohak Ants to NISA and SIPs — 2026-10-22
Top developments
Korean “Seohak Ants” Triple US Stock Buying Amid KOSPI Volatility
Korean individual investors, known as "Seohak Ants," net bought $2.96 billion of U.S. stocks in the first half of October, a figure three times higher than September’s total. This surge occurred as the KOSPI experienced significant volatility, with forced sales topping 50 billion won for five straight sessions, pushing investor cash deposits to a nine-month low of 92 trillion won.
Leverage Losses Mount for Korean Retail Investors
Despite the shift to US markets, Korean retail investors have suffered massive losses from single-stock leveraged ETFs. Since the product's launch, individual investors have lost 6.31 trillion won ($4.5 billion) in roughly two and a half months, with investors aged 70 and older losing an average of 29.94 million won per account. Concurrently, Korean investors poured $2.5 billion into the Direxion Daily Semiconductor Bull 3X ETF (SOXL) in just one week, betting on a semiconductor rebound despite recent declines.
Japan’s New NISA Adoption Peaks Among 50-Year-Olds
Japan’s Financial Services Agency reported that new NISA (Nippon Individual Savings Account) usage is surging, with the number of accounts reaching 30.48 million as of June 2026. The 50-year-old demographic led growth, adding 460,000 new accounts in the last six months, reflecting a rush to maximize tax-free investment opportunities before retirement.
India Records ₹32,490 Crore SIP Inflows Despite FPI Exits
India’s mutual fund industry recorded a record ₹32,490 crore (approx. $3.8 billion) in Systematic Investment Plan (SIP) inflows in September. However, this domestic stability was offset by Foreign Portfolio Investors (FPIs) withdrawing ₹3 lakh crore, with technology stocks being the only sector to attract fresh foreign money, gaining ₹2,599 crore.
China’s Margin Balances Fall for Seven Straight Sessions
China’s margin trading balances (liangrong) fell for the seventh consecutive trading day, shrinking by a cumulative 91.618 billion yuan to 2.48 trillion yuan. This sustained decline indicates a broader deleveraging trend among Chinese retail investors as market sentiment remains cautious.
Taiwan ETF Beneficiary Numbers Hit Record High
In Taiwan, the number of beneficiaries in listed ETFs surpassed 19 million, with 22 funds simultaneously hitting new highs. Despite a 1,000-point drop in the Taiex over two days, retail investors continued to buy into market-cap and high-dividend ETFs, with the Yuanta Taiwan 50 (0050) adding 112,000 investors in a single week.
Local view
- Seoul Economic Daily highlights that while Korean investors are fleeing the domestic market, their US holdings have actually decreased in value recently due to market swings, with $16 trillion won evaporating from US stock balances in just one week.
- Yahoo! News Japan reports that while NISA inflows are strong, experts warn against common mistakes in index fund selection, noting that over 1 trillion yen flowed into index funds in September alone.
- Business Standard India notes that direct mutual fund plans have gained significant share in long-term SIPs, doubling their market share from 6.9% in 2021 to over 15% in 2026 as investors seek lower expense ratios.
Context & numbers
- Korea: Net US stock buying reached $2.96 billion in H1 Oct; KOSPI cash balances fell to 92 trillion won.
- Japan: NISA accounts reached 30.48 million (June 2026); 50-year-olds added 460,000 accounts.
- India: September SIP inflows hit ₹32,490 crore; FPI outflows reached ₹3 lakh crore for the year.
- China: Margin balances fell 91.6 billion yuan over 7 sessions to 2.48 trillion yuan.
- Taiwan: ETF beneficiaries exceeded 19 million; 0050 ETF added 112,000 investors in one week.
On the radar
- Korea: Watch for further forced selling if KOSPI volatility continues, as investor cash reserves are at multi-year lows.
- Japan: The NISA year-end deadline approaches, potentially driving a final surge in December buy orders.
- India: The Choice Large & Mid Cap Fund NFO is open for subscription until November 3, offering a test of retail appetite in sideways markets.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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