CNBC AI News, July 17th – South Korean investors are aggressively increasing their exposure to Chinese equities, according to data released by the Korea Securities Depository (KSD).
As of July 15th, cumulative trading volume in Hong Kong and mainland China (A-shares) by Korean investors has surpassed $5.4 billion year-to-date. This figure establishes China as the second-largest overseas investment destination for South Korean retail investors, trailing only the US market.
Xiaomi Group reigns as the most favored target among Korean investors, attracting approximately $170 million in net purchases.
BYD and Contemporary Amperex Technology Co. Limited (CATL), prominent players in the electric vehicle and battery sectors, have also garnered significant attention, pulling in $93.1 million and $60.89 million respectively.
Notably, Pop Mart, the company behind the wildly popular Labubu collectible toy line in South Korea, has also witnessed a surge in investor interest, with net purchases exceeding $34.94 million.
In the A-share market, the China Universal CSI Robotics ETF has emerged as a top pick for Korean investors, experiencing substantial accumulation.
Analysts suggest that this shift in Korean capital towards high-growth technology and emerging industries reflects both the attractive performance of the Chinese market and the dynamics within the Korean domestic market.
Further reports indicate that the Korea Composite Stock Price Index (KOSPI) has been a standout performer in the global equities arena during the first half of 2025, boasting a cumulative gain of 28.01% – the highest worldwide.
This impressive performance is attributed to Korea’s pivotal role in the global technology supply chain, particularly in sectors such as semiconductors and consumer electronics, where numerous Korean companies hold significant international competitive advantages.
The sustained growth in global technology demand, especially driven by emerging technologies like artificial intelligence and 5G, has provided strong tailwinds for the earnings of Korean technology companies.
Furthermore, a series of economic stimulus policies and financial market reforms implemented by the Korean government have created a favorable environment for the stock market’s expansion.
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