36氪·2025-08-13 00:25Core Viewpoint - The article discusses the increasing interest of South Korean investors in the Chinese stock market, highlighting a shift in investment preferences due to various economic factors and the performance of different markets [4][10][41]. Group 1: Investment Trends - As of July 25, 2023, China has surpassed Japan and the EU to become the second-largest overseas stock market for South Korean investors, based on trading volume [4][5]. - The cumulative trading volume of the Chinese stock market, including Hong Kong and A-shares, reached $57.64 billion, ranking second only to the U.S. market [5]. - South Korean investors show a preference for Hong Kong stocks over A-shares, focusing on technology and consumer sectors [6][10]. Group 2: Notable Stocks - The top ten net purchased stocks by South Korean investors as of July 25, 2025, are all Hong Kong stocks, with Xiaomi Group-W and BYD Company Limited leading with net purchases exceeding $1 billion [7][8]. - Other notable stocks include Ningde Times and Alibaba, indicating a strong interest in technology and consumer goods [8][9]. Group 3: Market Dynamics - The enthusiasm for Chinese stocks is partly driven by the volatility in the U.S. market and a desire for diversified investment strategies [10][12]. - In February 2025, South Korean investors pushed trading volumes in the Chinese market to $782 million, a 179% increase from the previous month, marking the highest level since August 2022 [14]. - The average return of Chinese stock funds in South Korea was 43.56% over six months, significantly outperforming domestic and U.S. stock funds [17]. Group 4: Broader Economic Context - The shift towards overseas investments, including in China, reflects a broader trend of South Koreans seeking alternatives due to stagnant domestic economic conditions and rising real estate prices [25][32]. - The average return of the South Korean stock market over the past decade was only 5%, compared to 10% for China and 13% for the U.S., contributing to the growing interest in foreign markets [40][41]. Group 5: Regulatory and Political Factors - Recent political changes in South Korea, including the new administration's commitment to reform the stock market, aim to enhance its attractiveness and reverse the "Korean discount" phenomenon [42][43]. - The government's focus on improving market conditions may further encourage local investors to consider both domestic and international opportunities [42][43].