Nasdaq Retracess 10% and KOSPI Plunges Nearly 40% Following Mainland US Stock Sales Restrictions

Mainland investors restricted to selling US stocks via major brokers after regulatory crackdown. Nasdaq drops 10% from highs, while KOSPI plunges nearly 40% amid capital outflows.

Woofun AI reports that the China Securities Regulatory Commission’s crackdown on cross-border brokers like Tiger Brokers and Futu has restricted mainland users to selling and withdrawing funds only. This policy shift coincided with a significant market downturn, as the Nasdaq 100 retreated approximately 10.1% from its all-time high of 30,762.20 points. On Hyperliquid, the XYZ100 index currently trades around 27,664 points, reflecting a 6.2% decline since the May 22nd regulatory announcement. The South Korean market experienced even sharper corrections, with the KOSPI falling nearly 29% from May levels and retracing close to 39% from its June peak.