🔴Leverage-fueled greed is being punished in real time in Asia Margin debt in South Korea has declined by -$4 billion, to ~$23 billion, after peaking at a record ~$27 billion in June. At the same time, assets under management (AUM) in South Korea's leveraged ETFs have collapsed -$37 billion, or -70%, to ~$16 billion, from their June peak of ~$53 billion. Retail brokerage deposits reserved for stock purchases have dropped -23.4%, or -$22.6 billion, to ~$74 billion, from the June peak of ~$96.6 billion. This comes as nearly half of Korea Investment & Securities' 880,000 clients holding Samsung shares are now sitting on losses, while ~70% of its SK Hynix investors were in the red as of Thursday. Meanwhile, stock margin loans in China have dropped -$59 billion, to $385 billion, the lowest since April. In Taiwan, margin debt has declined -$4 billion from its July peak, to $15 billion, the lowest since May. The same leverage that fueled Asia's rally is now accelerating its unwind.