In the wake of last week's historic inter-Korea summit, William Lam outlines his reasons for cautious optimism, which come in addition to the fundamental reasons he is positive on the South Korean market
Last week's inter-Korea summit, where Moon Jae-in and Kim Jong-un announced they plan to sign a peace treaty in 2018 and formally bring about an end to military conflict, has given markets a little boost. This is just a prelude to Donald Trump's meeting with Kim, with denuclearisation likely to be his ultimate aim, but news reports suggest Kim promised Moon he would abandon his nuclear programme and close the main test sites this month, inviting Korean and American media to witness the shutdown. Denuclearisation would undoubtedly give holders of Korean equities a ‘peace dividend' but ...
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