Surging Interest in China’s Technology Shares Among South Korean Investors
China’s technology sector is rapidly growing, attracting foreign investment, especially from South Korea. Key advancements in AI, particularly from DeepSeek, have sparked confidence in Chinese equities. Despite declines in markets like Nasdaq, Chinese indices have seen substantial growth, drawing interest and investment from foreign firms. Experts predict an optimistic future for China’s market performance and valuation.
China’s technology shares are experiencing remarkable growth, attracting significant interest from foreign investors, particularly those from South Korea. The advancements in artificial intelligence by Hangzhou’s DeepSeek have enhanced perceptions of China’s commitment to high-tech industries, especially as markets like New York’s Nasdaq experience declines.
Foreign Minister Wang Yi’s recent comments highlighting China as an “anchor of stability” amid global tensions have resonated with investors. Haitong Securities noted that the technology sector has thrived this year due to innovations from companies like DeepSeek and government support. Major investment firms, including Goldman Sachs and Morgan Stanley, have released positive forecasts regarding investments in China’s market.
South Korean investors have notably expanded their Chinese stock portfolios, especially in technologies. The trading value reached $782 million in February, marking a 30-month high, with significant increases in transactions compared to European and Japanese shares. In fact, six of the top ten foreign stocks purchased by South Korean investors were Chinese tech equities.
Xiaomi Corp emerged as the most favored stock among South Korean investors, amassing a trading value of $72.4 million. Following it were popular electric vehicle manufacturers like BYD and e-commerce giant Alibaba. In contrast to South Korea’s stagnant market, Shanghai’s STAR 50 Index has grown over 15%, and the Hang Seng Tech Index has surged by 43%.
Edward Cole, a market analyst at Man Group Plc, expressed a bullish outlook on China’s stock market, suggesting it could become the most “convincing” market by 2025. He emphasized that the valuation of China’s market remains attractive compared to others, providing foreign investors with both safety and the potential for high returns.
In summary, China’s technology shares are gaining momentum, largely driven by advancements in AI and investor confidence bolstered by supportive government rhetoric. South Korean investors are particularly responsive, increasing their stakes in Chinese tech stocks significantly. As the Chinese market outperforms its counterparts, experts foresee its valuation as a promising opportunity for foreign investors, potentially making it a leading market by 2025.
Original Source: www.shine.cn
