Amid increasing global capital market volatility and heightened geopolitical risks, Chinese assets are attracting significant attention from overseas investors due to their unique value-for-money advantages.
Data from SEIbro, under the Korea Securities Depository (KSD), reveals that over the past month, Korean investors have shown strong net buying interest in several A-share securities. Key purchases include Sany Heavy Industry, Power Construction Corporation of China, Jiangsu Changjiang Electronics Technology, Accelink Technologies, Meihua Holdings, Ganfeng Lithium Group, and XJ Electric. The net purchase amount for each of these stocks exceeded $1 million.
Notably, related ETFs are also on Korean investors' shopping lists. Over the past month, the Guolian An Zhongzheng All Share Semiconductor Products and Equipment ETF and the ChinaAMC China Semiconductor Chip ETF ranked among the top ETFs by net purchase value from Korean investors.
**Focus on "HALO" Assets and Emerging Sectors** Recent investment trends from Korean retail investors highlight a strong preference for Chinese "HALO" assets and emerging sectors like semiconductors.
SEIbro data indicates that Korean investors have developed significant interest in industry leaders such as Sany Heavy Industry, Power Construction Corporation of China, and XJ Electric over the past month. Sany Heavy Industry led with net purchases surpassing $6.3 million, followed by Power Construction Corporation of China with over $4.4 million, and XJ Electric with no less than $1.3 million.
These leading traditional industrial companies favored by Korean investors are referred to as "HALO" assets. Such assets are difficult to replace amid the AI technology wave and serve as essential infrastructure providers—or "shovel sellers"—for energy transition, grid upgrades, and advanced manufacturing, positioning them in high-growth segments.
A recent report from CITIC Securities points out that "HALO" essentially represents a revaluation of assets with low substitution risk, reflecting a one-time survival premium. However, "HALO" does not equate to structural winners. Defensive allocation based solely on survival certainty is unlikely to form a long-term trend. Assets with sustained potential for excess returns should be located at key nodes along the AI expansion path, deeply integrated with resource constraints or technological upgrade directions, and possess characteristics of profit elasticity.
Stocks in technology sectors are also popular among Korean investors. Data shows that domestic semiconductor packaging and testing leader Jiangsu Changjiang Electronics Technology and optical module frontrunner Accelink Technologies each saw net purchases of no less than $1.5 million over the past month.
Simultaneously, Korean investors are showing high interest in assets related to the robotics industry. The latest data from the Korea Exchange (KRX) indicates that among the seven humanoid robot-themed ETF funds currently listed in Korea, the size of funds investing in Chinese companies is now roughly on par with those focused on Korean companies.
Earlier in March, embodied AI company StarMove Era announced the completion of a 10 billion yuan strategic funding round. According to Tianyancha data, this round involved joint investments from institutions including Samsung, Gaocheng Investment, Singapore Telecommunications, Woori Capital (affiliated with Woori Financial Group), China International Capital Corporation (CICC) Porsche, Zhongxin Juyuan, Fenghe Capital, Xichuang Investment, GF Qianhe, and Hongrui Group, with additional investments from existing shareholders like CDH VGC and Qingkong Tiancheng.
Liu Youhua, Research Director at Paipai Network Wealth, commented that Korean investors' recent focus on Chinese AI, robotics, and related fields is driven by three main considerations. First is industrial growth potential and valuation attractiveness. China boasts complete industrial clusters and clear policy benefits in these areas, offering significant growth prospects. Meanwhile, valuations of related assets are at historical lows, presenting outstanding value compared to markets like Korea. Second is notable industrial complementarity. Korea holds advantages in materials and precision manufacturing, which can deeply integrate with China's vast application market and supply chain system, allowing Korean capital to benefit from industrial synergies. Third is the improvement in the investment environment. The stabilization of the RMB exchange rate has enhanced the appeal of Chinese assets.
**Accessing Emerging Sectors via ETFs** As domestic investment channels continue to diversify, a growing number of overseas investors are using ETFs for one-stop allocation to quality A-share assets.
Among the securities with the highest net purchase values over the past month, the Guolian An Zhongzheng All Share Semiconductor Products and Equipment ETF and the ChinaAMC China Semiconductor Chip ETF recorded net purchases of $1.2772 million and $864,800, ranking eighth and tenth, respectively.
In the robotics sector, two ETFs listed in Korea that track Chinese robotics companies are the Tiger China Humanoid Robot ETF and the Kodex China Humanoid Robot ETF. The former primarily invests in the robotics supply chain, covering components like motors, sensors, actuators, and control systems; the latter focuses on companies involved in robot development, motion control systems, and automation technology.
ETFs significantly reduce stock-picking difficulty. A single thematic ETF packages a basket of industry leaders, addressing the challenge for international investors who may lack deep research on individual A-shares and enabling efficient diversified allocation. Liu Yan, Chairman of Anjue Assets, noted that ETFs lower cross-border investment barriers in multiple dimensions, providing foreign investors with a convenient path to access key Chinese sectors. ETFs eliminate the need for overseas investors to open separate A-share accounts or handle complex currency exchange procedures; they can be traded directly through local brokers or connectivity mechanisms, with fund managers handling unified currency conversion, bypassing account and forex barriers and reducing transaction processes and time costs.
Furthermore, ETFs have low minimum investment thresholds. Foreign investors can use a small amount of capital to gain exposure to Chinese high-tech and other sector-related targets through various specialized industry ETFs, without the pressure and risk of investing in single stocks.
Additionally, ETFs involve fund managers conducting security selection and portfolio adjustments, mitigating the issue of limited familiarity with individual A-shares among foreign investors, lowering research and stock-picking barriers, and significantly reducing information asymmetry. Combined with low management and custody fees and support for intraday flexible trading, ETFs help control transaction costs and improve capital efficiency, thereby substantially easing the difficulty for foreign investors engaging in cross-border A-share investments.
**Prominent "Value-for-Money" Appeal of Chinese Assets** Against the backdrop of heightened global capital market volatility and increased geopolitical risks, the value-for-money proposition of Chinese assets is becoming increasingly prominent.
Liu Youhua believes that although the A-share and Hong Kong markets have undergone varying degrees of repair in recent years, the price-to-earnings ratios of major indices remain at low levels. Meanwhile, sectors like technology and manufacturing show strong expected profit growth for 2026, creating an attractive combination of "low valuation + high profit growth." Furthermore, in sectors representing "new quality productive forces," such as AI, robotics, and innovative pharmaceuticals, China benefits from clear industrial policy support and long-term development barriers, highlighting their prominent long-term allocation value.
The core logic behind Korean investors' continued focus on Chinese AI, robotics, and related fields lies in the irreplaceable comprehensive advantages of China's related industries. Liu Yan stated that China and Korea exhibit strong industrial complementarity in many areas, making it easier for Korean investors to understand the investment rationale of Chinese companies. Moreover, the significant improvement in investment convenience in China has led many Korean investors, driven by strong demand for high-growth, high-return assets, to increase their allocations to the Chinese capital market. This essentially reflects long-term optimism regarding China's industrial upgrading and technological innovation.
Liu Yan further pointed out that within the context of a weaker US dollar cycle, RMB-denominated assets are gaining increasing attention from global investors. Additionally, the Chinese capital market has a low correlation with international geopolitical risks, positioning it as a potential safe haven for global capital and a top-tier allocation choice for international investors amid a weakening US dollar trend.
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