SEOUL, KOREA - The importance of "China Money" is rising rapidly in Korea's stock market. According to financial investment sources on September 1, the net-buying volume by Chinese investors for the seven-month period between January and July this year was 1,890 billion.
In terms of cumulative volume from the 2008 global financial crisis, this is the first time to surpass the 10-trillion-won level. For this year to date, the share of Chinese investment in foreign net-buying volume was 54.7 percent.
Jeon Jong-gyu, analyst with Samsung Securities, said, "One must pay attention to the trend that Chinese investment has continuously increased since the financial crisis. It was only Chinese and American investors who have consistently net-bought Korean stocks for six years since the crisis."
Actually of the cumulative net-buying volume of 12.2 trillion won since 2008 as much as 85.5 percent was originated from China. Of the 1.6 trillion won foreign net buying volume last year, 2.2 trillion won was from Chinese investors. According to the Samsung Securities analyst, the "Buy Korea" trend by Chinese investors will continue for the time being given most of the investment was made by the Chinese sovereign wealth funds such as China Investment Corp., the State Administration of Foreign Exchange, and the National Social Security Fund.
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