TechFlow news, July 22. In mid-July, against the backdrop of a phased pullback in the A-share technology and semiconductor sectors, South Korean investors continued to increase allocation to Chinese assets. Data shows that during the week from July 13 to July 19, Cambricon received net purchases of US$2.8577 million from South Korean investors, ranking first among A-share individual stocks. Semiconductor companies such as SMIC, Montage Technology, Hua Hong Hongli, and AMEC also saw significant increases. Looking at the past month, Dongshan Precision had the highest net purchase amount, while Cambricon, Sugon, and Leon Microelectronics also received increased allocation from South Korean funds.
Regarding Hong Kong stocks, South Korean investors allocated more through ETFs. In the past week, both Premia China STAR 50 ETF and Global X China Semiconductor ETF received significant net purchases; in the past month, net purchases of Global X China Semiconductor ETF reached US$15.9148 million. In the first half of 2026, South Korean investors cumulatively net purchased US$2.819 billion worth of Chinese assets through individual stocks and ETFs, of which A-share purchases amounted to US$678 million, a year-on-year increase of 130.55%.
Reports pointed out that South Korean funds increasing allocation to Chinese assets is related on one hand to the significant pullback in the South Korean local market in July and the rise in concentrated holding risks, and on the other hand is driven by international institutions' bullish views on Chinese technology stocks. Goldman Sachs, Standard Chartered Bank, Morgan Stanley, and Citigroup have recently released more positive allocation views on Chinese stocks, believing that China's artificial intelligence industry chain, semiconductor, and related infrastructure fields have room for valuation repair.
