Opinion: Strong Rebound After a Plunge - Not a Reversal, Market Rescue Not a Guarantee

On July 31, the Taiwan Weighted Index surged by 3,186.45 points, a 7.98% increase. On the same day, the KOSPI (Korea Composite Stock Price Index) soared by 17.91%, with Samsung Electronics rising by 26.81% and SK Hynix by 29.95%. Social media platforms quickly circulated recruitment posts such as 'official reversal,' 'go all-in on buying,' and 'double the price.' However, the real question is not whether the market has rebounded, but who was forced to sell a few days ago, who bought back on the rebound day, which trading costs have changed due to policy changes, and whether corporate earnings can support higher valuations. Prices can change in a day, but business cash flow won't be rewritten overnight with a 'market rescue.' The sharp rises in Taiwan and South Korea are more like the elastic reaction of a high-leverage market after pressure is released, rather than a new bull market that has been officially stamped.