Core Viewpoint - Korean investors are increasingly buying Chinese stocks, with significant growth in trading volumes and a focus on technology sectors such as electric vehicles, artificial intelligence, and semiconductors [1][3][4] Group 1: Investment Trends - In February, Korean investors' trading volume in A-shares and Hong Kong stocks reached $782 million, a nearly 200% increase month-on-month, marking the highest level since August 2022 [3][4] - Chinese stocks occupied six of the top ten positions in net purchases by Korean investors from February 17 to 28, primarily in leading technology companies [3][4] - The return of foreign capital to the Chinese market is noted, with both short-term and long-term investors showing interest, particularly in the Hong Kong technology sector [1][6] Group 2: Market Performance - The performance of Chinese index ETFs listed on the Korean exchange has been strong, with the top ETF gaining 62.8% in the past month, contrasting sharply with less than 10% returns from U.S. index ETFs [4] - The A-share Science and Technology Innovation 50 Index has risen over 16% since January 13, while the Hang Seng Technology Index has increased by 43%, significantly outperforming other major stock indices [7] Group 3: Valuation and Future Outlook - Despite substantial gains, the average price-to-earnings ratio of China's "seven giants" in technology is 32.3 times, still lower than the 37.6 times for Nvidia, indicating potential for further appreciation [8][9] - Analysts predict that the Chinese AI sector's market value could rise from $350 billion to $480 billion by 2028, driven by technological advancements and supportive macroeconomic policies [8][9] - The overall sentiment among foreign investors is optimistic, with expectations of continued interest in Chinese assets and potential annual returns of 7.8% over the next 10 to 15 years [9][10]