The short-term strategy aims to exploit a mean-reversion opportunity after Chinese equities fell to record lows relative to South Korea. Unwinding speculation hits KOSPIThe call comes as a speculative rally in South Korean equities, which peaked on June 22, unravels. BCA warned that the KOSPI could drop an additional 15% to 20% from current levels before hitting its 200-day moving average. Despite the short-term negative outlook for South Korean equities, BCA cautioned against viewing the tactical rotation as a multi-year structural shift. BCA warned that much of the optimism is already priced into these elevated valuations.