[Special Stock] Content Stocks Rally on Expectations of China Lifting Hanhanryeong Ban

Content-related stocks are showing strong performance amid expectations of the lifting of China's Hanhanryeong (Korean Wave restriction).

As of 9:31 AM on the 20th, Contentsree Joongang was trading at 10,200 KRW, up 2,030 KRW (24.85%) from the previous trading day. Ace Story (30%), Studio Dragon (19.76%), Samhwa Networks (15.40%), CJ ENM (11.74%), and SBS (6.39%) are also showing strong gains.

According to China Central Television (CCTV) on the 19th, the General Office of the State Council announced the "2025 Foreign Investment Stability Action Plan" prepared by the Ministry of Commerce and the National Development and Reform Commission. Amid a sharp decline in foreign investment last year, the action plan states that foreign investment is a key factor in increasing the level of openness to the outside world and plays an important role in developing new quality productive forces and realizing Chinese-style modernization.

Along with this, there is also growing anticipation for the lifting of Hanhanryeong. Recently, Chinese President Xi Jinping directly stated that he is considering attending the Asia-Pacific Economic Cooperation (APEC) summit to be held in Gyeongju this October, leading to expectations that the restriction could be lifted in the first half of this year.

Ji In-hae, a researcher at Shinhan Investment Corp., said, "Recently, the drama production industry has been in turmoil due to the growing dominance of Netflix," adding, "The only factor that can overturn this situation is China."

He emphasized, "Because Netflix cannot enter China, there is an opportunity to benefit from separate sales of Chinese distribution rights," and "Large studios that have accumulated numerous old IPs and are planning new IPs are expected to benefit."