[Aju News DB]
South Korean investors are pouring a large amount of money into local funds that invest in Chinese stocks ahead of next month's stock link between Shenzhen and Hong Kong, a market tracker said Tuesday.
According to Korea Fund Ratings, China-focused equity funds posted a net inflow of 29.8 billion won (26.2 million US dollars) for the past one-month period, the largest among offshore stock funds.
Overall, overseas stock funds suffered a net outflow of 140.2 billion won during the period. The net inflow into Chinese stock funds is in sharp contrast to recent capital outflows. Investors pulled 96.7 billion won from Chinese stock funds over the last three months and 215.4 billion won in the last six months.
According to Korea Ratings, Chinese stock funds registered a return of 1.3 percent this month. Analysts attributed the net inflow of money into Chinese equity funds to investor expectations for higher returns following the Shenzhen-Hong Kong stock link.
"The turnover of China's stock market has been rising on expectations that the stock link could help expand the country's capital market," said Oh Eun-soo, a researcher at Hyundai Securities Co. "China-focused equity funds are expected to enjoy higher returns as Beijing's tough measures to cool the property market, unveiled early this month, has flooded its stock market with money."
China reportedly plans to launch the Shenzhen-Hong Kong Stock Connect in the third or fourth week of November, allowing foreign investors to invest directly in stocks listed on the Shenzhen Stock Exchange through the Hong Kong Stock Exchange.
(Yonhap)
reporter
Park Sae-jin
swatchsjp@ajunews.com
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