Korean Investors Bet Big on Chinese Stocks: A 30% Surge in 2025

Key Points

Significant Surge: South Korean investors have increased their holdings in Chinese equities by a massive 30% in 2025, reaching ¥24.475 billion RMB ($3.42 billion USD) by August 18.
Targeted Sectors: The capital inflow is primarily directed towards high-growth Technology and New Energy sectors.
Key Players: Investors are focusing on established giants such as Xiaomi (Xiaomi 红米), Tencent (Tengxun 腾讯), and BYD (Build Your Dreams 比亚迪).
Market Rebound: This surge signifies a strong rebound after a two-year decline, with holdings bottoming out at ¥19.083 billion RMB ($2.67 billion USD) at the end of 2024 from a peak of ¥27.659 billion RMB ($3.87 billion USD) in late 2022.

Here’s the deal: Korean investors are piling into Chinese stocks, signaling a major shift in market sentiment after a multi-year slump.

As of August 18, 2025, South Korean investors have boosted their holdings in Chinese equities by a massive 30% this year alone.

This isn’t pocket change. We’re talking about a jump from ¥19.083 billion RMB ($2.67 billion USD) at the end of 2024 to an impressive ¥24.475 billion RMB ($3.42 billion USD).

This surge is a clear indicator of renewed confidence, primarily from Korean retail investors looking for growth opportunities in the Chinese market.


Date	Holdings (¥ Billion RMB)	Holdings ($ Billion USD)	Change Since Previous Period
End of 2022	27.659	3.87	–
End of 2023	N/A	N/A	Decline
End of 2024	19.083	2.67	Bottomed Out
August 18, 2025	24.475	3.42	+30% from YE 2024

What’s Driving the Inflow? Tech and New Energy Lead the Charge

So, where is all this capital flowing?

The money is chasing two of the hottest sectors right now: Technology and New Energy.

These aren’t random bets. Investors are targeting established giants with serious market power.

The top names getting the most attention include:

Xiaomi (Xiaomi 红米): The consumer electronics powerhouse known for its competitive smartphones and growing ecosystem of smart devices.

Tencent (Tengxun 腾讯): The undisputed king of social media and gaming in China, with its super-app WeChat and a massive investment portfolio.

BYD (Build Your Dreams 比亚迪): A global leader in the new energy vehicle (NEV) space, challenging legacy automakers and expanding aggressively worldwide.

These companies represent a strategic play on both China’s massive consumer market and its global ambitions in future-forward industries.


Company	Sector	Description
Xiaomi (Xiaomi 红米)	Technology / Consumer Electronics	Leading smartphone and smart device manufacturer.
Tencent (Tengxun 腾讯)	Technology / Internet Services	Gaming, social media (WeChat), and investment giant.
BYD (Build Your Dreams 比亚迪)	New Energy / Automotive	Global leader in New Energy Vehicles (NEVs).

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The Bigger Picture: A Strong Rebound After a Two-Year Slump

This 2025 rally is more than just a good headline; it’s a comeback story.

Korean investment in Chinese stocks actually peaked back at the end of 2022, when holdings stood at ¥27.659 billion RMB ($3.87 billion USD).

What followed was a period of decline through both 2023 and 2024 as market sentiment soured.

Let’s break down the timeline:

End of 2022: Peak holdings at ¥27.659 billion RMB ($3.87 billion USD).

2023 – 2024: A period of consecutive declines and investor pullback.

End of 2024: Holdings bottom out at ¥19.083 billion RMB ($2.67 billion USD).

August 2025: A powerful rebound to ¥24.475 billion RMB ($3.42 billion USD).

The current trend suggests that the dip is over, and investors are now seeing value and opportunity, aligning with a broader recovery in targeted sectors like tech and green energy.

Key Takeaways for Investors and Founders

Here’s the bottom line:

A 30% Surge: Korean retail investors have injected billions into Chinese A-shares and H-shares in 2025.

Sector-Specific Bets: The focus is sharp, targeting high-growth technology and new energy leaders like Xiaomi, Tencent, and BYD.

Market Rebound: This isn’t just new interest; it’s a significant recovery from a two-year downturn, signaling a potential turning point for investor confidence.

For anyone tracking global capital flows and tech trends, the growing interest from Korean investors in Chinese stocks is a critical development to watch.

Summary of South Korean Investment Surge in Chinese Equities