CNBC AI News, July 20th – According to data from SEIBro, a subsidiary of the Korea Securities Depository (KSD), Chinese markets have emerged as the second most favored overseas investment destination for South Korean retail investors year-to-date, trailing only the United States. The evaluation is based on trading volume as of July 17th, according to domestic reports.
Hong Kong stocks appear to be a particular favorite, with Xiaomi Group-W commanding the largest share of Korean holdings in the region.
SEIBro data reveals that, in the year leading up to July 18th, 2025, the top ten Hong Kong-listed stocks by net purchase amount by Korean investors were: Xiaomi Group-W, BYD Company, CATL, Alibaba Group-W, Lao Feng Xiang, Pop Mart International Group, BeiGene, Sanhua Intelligent Controls, Global X Hang Seng TECH ETF, and UBTECH Robotics.
Notably, as of July 18th, Korean investors held a substantial 66.7 trillion won in deployable funds earmarked for stock purchases. This elevated level indicates a significant capacity for further investment.
So, what’s fueling this South Korean appetite for Chinese assets? With lackluster performance in the domestic Korean stock market, the relatively higher returns offered by Chinese equities are proving to be particularly appealing.
Moreover, China’s rapid advancements in high-tech sectors, particularly in areas like artificial intelligence, electric vehicles, and semiconductors, have instilled confidence among Korean investors, reinforcing their belief in the potential for further appreciation of Chinese assets.
Adding to the allure are China’s proactive policies aimed at supporting private enterprises, coupled with attractive market valuations, creating a compelling proposition for value-seeking investors.
Analysts suggest that this buying spree of Chinese stocks is a microcosm of a broader trend: a global re-evaluation and strategic reallocation of capital towards Chinese assets.
While global investment flows have historically gravitated towards the U.S. market, China’s sustained economic growth and increasing capacity for technological innovation are elevating the significance of Chinese assets within the global investment landscape.
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