South Korean investors have purchased a net total of 1 trillion won (approximately $678 million) in Chinese mainland stocks this year, marking a 130.5% increase compared to the previous year, according to a report by Shanghai Securities News on July 22.
In the first half of this year, the most purchased Chinese stock by South Korean investors was semiconductor equipment manufacturer North Huachuang, with a net purchase of $33.94 million. GPU developer Cambricon followed in second place with $27.28 million, while CATL, the leading battery manufacturer, ranked third with $12.54 million. Other notable companies in the top ten included SANY Heavy Industry, Zhaoyi Innovation, BYD, Foxconn, and Shenzhen SMI.
In the Hong Kong stock market, South Korean investors primarily bought shares of SMIC, the top foundry company, with a purchase amount of $85.46 million. When combining purchases from both the mainland and Hong Kong markets, SMIC emerged as the most acquired stock. The second most purchased stock listed in Hong Kong was AI company Minimax, with $66.65 million.
Even during a market correction last week, South Korean investors continued to buy mainland Chinese stocks. From July 13 to 17, they purchased $2.85 million worth of Cambricon shares. Stocks from semiconductor companies such as SMIC, Lattice Semiconductor, Huahong Semiconductor, and AMEC also saw net purchases exceeding $1 million each.
Meanwhile, Citigroup raised its investment outlook for the Chinese stock market from 'Tactical Neutral' to 'Overweight' in a report released on July 20. The bank noted that while the growth in earnings per share (EPS) for Chinese companies remains sluggish, the low investment levels, falling oil prices, and potential global economic recovery suggest a significant inflow of foreign capital could occur.
* This article has been translated by AI.
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