CCTV Self-Assesses: "Overseas Investors Show Growing Interest in China's Advanced Technologies Such as Electric Vehicles and AI"
"I dislike China, but I just can't avoid buying stocks."
AI startup DeepSeek has triggered a surge in Chinese tech stocks, attracting a large influx of funds into Chinese stocks. Chinese state media has particularly highlighted the sharp increase in Korean investors purchasing shares of Chinese companies.
This year, as China has emerged prominently in the field of advanced technology and the Chinese stock market has heated up, Chinese state media have prominently highlighted the surge in stock purchases of Chinese companies by Koreans. Photo by Getty Images
On the 12th, China Central Television (CCTV) analyzed data from the Korea Securities Depository and reported that the trading volume related to stocks listed on mainland China and Hong Kong exchanges by Korean investors last month reached $782 million (approximately 1.1 trillion KRW), nearly tripling compared to the previous month. This marked the highest level since August 2022 and surpassed the scale of Korean investments in European and Japanese stock markets during the same period.
CCTV noted that interest in Chinese stocks among overseas investors, especially Koreans, has grown this year following rapid advancements in China's high-tech sectors. A special correspondent based in Seoul for CCTV's economic channel, reporting from Yeouido, the financial hub of Korea, explained, "As more Korean investors turn their eyes to overseas stock markets, the Chinese stock market is gaining attention."
Furthermore, CCTV reported that among the top 10 overseas stocks by net purchase volume by Korean investors from the 17th to the 28th of last month, six were Chinese stocks, most of which were leading Chinese companies in electric vehicles, artificial intelligence (AI), and semiconductors. It also self-assessed that the investment enthusiasm for the Chinese stock market is expected to continue, supported by economic stimulus measures announced at China's Two Sessions (Lianghui - the National People's Congress and the Chinese People's Political Consultative Conference), which officially concluded on the 11th, as well as support plans for advanced technology industries such as robotics, semiconductors, and autonomous driving.
CCTV reported that the strong performance of Chinese tech stocks has also led to a noticeable increase in the returns of China-related Exchange-Traded Funds (ETFs) listed on the Korea Exchange compared to U.S.-related ETFs. As of the end of February, there were a total of 44 China ETFs listed on the Korea Exchange, with the highest-performing China ETF in the past month recording a return of 62.8%, while U.S. ETFs yielded less than 10%.
The rebound in the Chinese stock market and fund returns began in September last year, following the Chinese government's active commitment to boosting domestic demand. Since the unveiling of DeepSeek earlier this year, the so-called "Terrific 10" (including Xiaomi, Alibaba, and other 10 leading stocks), known as the Chinese version of the Magnificent 7 (M7), has attracted significant attention. Investors are expecting the rally in Chinese company stocks to continue.
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