SEOUL, Aug. 16 (Xinhua) -- Foreign holdings of South Korean stocks hit a new monthly high last month despite the rising geopolitical risks on the Korean Peninsula, financial watchdog data showed Wednesday.
Foreign holdings of domestic listed stocks amounted to 605.7 trillion won (530.7 billion U.S. dollars) as of end-July, topping the 600 trillion-won mark for the first time, according to the Financial Supervisory Service (FSS).
The figure accounted for 33.4 percent of the total market capitalization.
The expansion was attributable to the record-breaking trend of the main stock index. Foreigners continued to buy local stocks by mid-July.
Foreigners, however, began to reduce local stock holdings as tensions mounted on the peninsula. The Democratic People's Republic of Korea (DPRK) test-fired what it called intercontinental ballistic missiles (ICBM) twice in early and late July.
Offshore investors purchased a net 579 billion won worth of local stocks in July. U.S. and European investors were net buyers, but Middle East investors dumped shares.
Meanwhile, foreign ownership of local listed bonds reached 106.5 trillion won as of end-July, taking up 6.4 percent of the total listed bonds.
