Chinese media outlet Shanghai Securities News reported on the 21st that South Korean investors are buying Chinese stocks en masse, even as global markets are under pressure following fierce fluctuations in artificial intelligence (AI)-related stocks.

According to the article, which cited data from the Korea Securities Depository (KSD)'s securities information portal, among A-shares purchased by South Korean investors in the week of July 13-19, the net purchase amount for Cambricon, an AI semiconductor manufacturer, reached the top at 2,857,700 dollars (approximately 466 million yen). Semiconductor-related companies such as Semiconductor Manufacturing International Corporation (SMIC), Montage Technology, and Hua Hong Grace also each recorded net purchase amounts exceeding 1 million dollars (approximately 160 million yen).

Furthermore, in the Hong Kong market, ETFs investing in Chinese high-tech companies and semiconductor-related ETFs accounted for the top net purchase amounts.

What is noteworthy is that the purchase of Chinese stocks by South Korean investors is not short-term.

The net purchase amount for A-shares in the first half of this year was approximately 678 million dollars (110 billion yen), an increase of 130.55% compared to the same period last year. For individual stocks, Naura Technology, a semiconductor manufacturing equipment manufacturer, took the lead with approximately 33.94 million dollars (approximately 5.53 billion yen), followed by Cambricon and Contemporary Amperex Technology Co. Limited (CATL), the largest EV battery maker. In the Hong Kong market, SMIC was the most purchased stock in the first half (85.46 million dollars, approximately 13.94 billion yen), with the second-highest purchase amount going to AI company Xiyu Technology, and third to Alibaba. (Translation/Editing by Noyama)