Korean investors turned net buyers of several China-focused exchange-traded funds and technology stocks on Thursday amid a decline in mainland Chinese markets.
Korean investors increased their exposure to China's technology and advanced manufacturing sectors during a recent pullback in mainland China stocks. The buying focused on products tracking robotics, semiconductors, power-grid equipment and electronics supply chains.
They bought a net $3.21 million worth of the China Asset Management Co Robot ETF. This was followed by net purchases of $2.73 million in Shenzhen Fastprint Circuit Tech and $2.72 million in Guangdong Fenghua Advanced Technology. Investors also acquired a net $1.15 million of the ChinaAMC Grid Equipment Thematic ETF.
The CSI 300 Index fell 1.4 percent and the Shanghai Composite Index slid 2 percent on Thursday. "Korean investors have built strong confidence in the technology sector after years of gains in their domestic market," said Kenny Ng, an equity strategist at Everbright Securities International.
Many of the stocks rebounded the following day. Guangdong Fenghua jumped 10 percent to hit its daily limit on Friday.
