Moving funds from stocks to deposits… “Asset rebalancing appeared”

BOK Announces First Quarter of 2022 (Provisional)
Stocks and housing investment by households and non-profits plummeted
Significant increase in savings-type deposits due to stock recession, etc.

Kookmin Bank’s dealing room on the 5th [사진 국민은행]

As the domestic stock market failed to recover from this year’s downtrend, it was found that individual investors’ funds were moving rapidly from stocks to savings accounts. However, it was found that individual investors increased their funds to acquire foreign stocks such as the US more than domestic ones.

According to the statistics of ‘finance circulation in the first quarter of 2022 (provisional)’ released by the Bank of Korea on the 6th, the scale of net fund management by households and non-profit organizations was 60.4 trillion won in the first quarter, an increase from 51.1 trillion won recorded in the same period of the previous year. In addition, the size of the net funding of non-financial corporations also increased by 9.7 trillion won to 27.8 trillion won compared to the same period last year.

The net fund management amount is the value obtained by subtracting the funding amount from the fund management amount of the relevant economic entity. In general, households play a role in supplying excess money to other economic entities, such as corporations and the government, through deposits or investments when this net operating amount is positive.

The BOK analyzed that the increase in net fund management by households and non-profit organizations was attributable to the increase in household income such as COVID-19 subsidies and the slowdown in housing investment.

In the net fund management of households and non-profit organizations, savings-type deposits increased to 42.3 trillion won in the first quarter, a significant increase from 15 trillion won in the first quarter of last year. On the other hand, the amount of stock acquisitions decreased significantly from 52.2 trillion won in the first quarter of last year to 16 trillion won in the first quarter of this year.

[사진 한국은행]

[사진 한국은행]

Looking at the proportion of households’ financial assets by product, deposits stood at 41.8% in the first quarter of this year, up 0.8 percentage points from a year earlier, and stocks fell 0.2 percentage points to 20.1% during the same period. In particular, the proportion of domestic stocks decreased by 0.6 percentage points to 18.5%, while that of overseas stocks increased by 0.5 percentage points to 1.7%.

Visit China-Kwon, head of the money circulation team at the Economic and Statistics Bureau of the Bank of Korea, explained, “In the first quarter, households and non-profit organizations acquired 7.7 trillion won in domestic stocks and 8.3 trillion won in overseas stocks.”

In particular, housing investment by households and non-profit organizations also slowed significantly. In the case of short-term loans of less than one year, the amount of financing changed from an increase of 15.2 trillion won to a decrease of 1.6 trillion won in the first quarter of last year, and the amount of investment in housing mortgages increased from 20.4 trillion won to 8.1 trillion won. greatly reduced

“According to the Korea Appraisal Board, the nationwide housing transaction volume recorded 138,000 in the first quarter of this year from 280,000 in the first quarter of last year,” said Bang. He also said, “The decrease in short-term loans appears to be due to interest rate hikes and loan regulations.

Reporter Lee Yong-woo ywlee@edaily.co.kr

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