South Korean Investors

South Korean retail investors favor Chinese markets, ranking them second only to the U.S. for overseas investments, driven by trading volume data ending July 17th. Hong Kong stocks, particularly Xiaomi, are popular. The top ten Hong Kong-listed stocks by net purchase amount by Korean investors included BYD, CATL and Alibaba. With considerable deployable funds, Korean investors are drawn to China’s higher returns, tech advancements in AI, EVs, and semiconductors, and pro-private enterprise policies. This reflects a broader global trend of capital reallocation towards Chinese assets due to its sustained economic growth and innovation.

South Korean investors are increasingly investing in Chinese equities, with over $5.4 billion traded year-to-date, making China their second-largest overseas investment destination. Xiaomi Group is the most popular stock, followed by BYD and CATL. Pop Mart also sees growing interest. The China Universal CSI Robotics ETF is favored in A-shares. This shift is likely due to the performance of Chinese tech and emerging industries, coupled with Korea’s strong KOSPI performance fueled by its tech sector dominance and government policies.