Korean investors are accelerating their allocation of Chinese assets: favoring Xiaomi the most, and also showing interest in BYD, Ningde Times, and Pinduoduo.

Korean investors are accelerating their allocation of Chinese assets. According to data from the Korea Securities Depository, as of July 15th, Korean investors' cumulative trading volume in the Hong Kong A-share market this year has exceeded $5.4 billion. China is the second largest overseas investment destination for Korean investors, after the United States, and they are particularly interested in companies such as Contemporary Amperex Technology and BabyTree. Korean investors favor Xiaomi Group the most, with purchases totaling around $170 million. They also invested $93.1 million in BYD and $60.89 million in Contemporary Amperex Technology. Labubu is also popular, and BabyTree has attracted net purchases of over $34.94 million. In terms of A-shares, investors are bullish on the Huaxia CSI Robotics ETF, making it a key holding. Analysis indicates that Korean funds clearly prefer technology growth and emerging industry companies, accelerating their presence in the Hong Kong stock market. This trend is driven by the performance of the Chinese market, as well as influenced by the trend of the Korean market, which has shown weaker performance in the first five months of this year.