Domestic individual investors investing in the Chinese and Hong Kong stock markets have significantly increased this year. With the sharp rise in the Greater China stock market since the beginning of the year, the listing of China's CATL, the world's largest battery corporation, on the Hong Kong stock exchange is interpreted as further stimulating investor sentiment. As retail investors flocked to the Greater China market, the securities industry also launched related events.
According to the Korea Securities Depository on the 22nd, as of the 20th of this month, the custody amount for the Chinese and Hong Kong stock markets was recorded at $3.47385 billion (approximately 4.7835 trillion won). This represents an increase of more than 1 trillion won in just four months, up from $2.6368 billion (approximately 3.6612 trillion won) at the end of January.
Investors bought a total of $364.93 million (approximately 502.8 billion won) worth of stocks representative of the Greater China market, such as Xiaomi, BYD, and Alibaba, by the 21st of this month. In particular, they net purchased $40.56 million (approximately 56 billion won) worth of CATL, which was listed on the 20th, over two days. CATL has quickly ranked among the top five stocks for net purchases in Hong Kong this year.
The Shanghai Composite Index and the Hong Kong H Index have risen by 7% and 27%, respectively, compared to the beginning of the year. The emergence of DeepSeek in January led to a substantial increase in Chinese technology stocks, and the Chinese government's monetary easing policies to stimulate domestic demand have positively impacted the stock market. While there was a temporary drop last month due to the U.S.-China tariff war, the market has now fully recovered.
As investors flocked to the Greater China stock markets, securities firms are also holding related events to attract customers. Mirae Asset Securities is currently conducting a "Hong Kong and China Stock Purchase Challenge" until the 30th. Among customers who purchase Hong Kong and Chinese listed stocks worth over 1 million won, 2,000 people will be drawn to receive an investment support fund of 30,000 won.
Shinhan Investment & Securities is holding a "commission promotion" and will exempt online trading commissions for new members for international stocks, including those from China and Hong Kong, for one year until the 30th of next month. A 95% currency exchange rate benefit will also apply.
Experts predict that China's economy will land softly, focusing on domestic demand, leading to further improvements in the stock market. There are suggestions that it is necessary to invest from a long-term perspective in sectors fostered by the government.
Jung Jeong-yeong, a researcher at Hanwha Investment & Securities, noted, "Investment in the robotics industry is actively being pursued under government leadership, approaching a full-scale mass production cycle," adding, "From the government's perspective, it is a card that can drive both the real economy and stock market rebound, so it should be viewed with a long-term perspective."
Shin Seung-woong, a researcher at Shinhan Investment & Securities, said, "Policy-led investments in sectors such as automobiles and information technology (IT) are solid," adding, "However, the recovery of private investments, including real estate, appears to be delayed."