Recently, South Korean QFI has purchased shares of Changxin Technology.

SEIBro data shows that South Korean investors immediately bought Changxin Technology via QFI at the first time

According to data from SEIBro, a subsidiary of Korea Securities Depository (KSD), as of August 18, the A-share with the largest purchase amount by South Korean investors in the past month is a mysterious stock. During this period, South Korean investors made a net purchase of this stock at US$45.322233 million (equivalent to about RMB 307.53 million). Extending the time horizon to the past three months, this stock still ranks first in the list of A-shares net purchased by South Korean investors.

SEIBro data shows that this stock does not have an ISIN code for the time being. ISIN is a 12-digit international securities identification code compiled in accordance with the ISO 6166 standard, which provides a unique global identifier for each security, is widely used in cross-border transactions, registration and settlement, and is independent of the internal security codes used by exchanges. After completing the necessary procedures, each security will have a unique ISIN code worldwide.

Which company is behind this stock? How do South Korean investors buy it?

In response, the KSD Securities Data Department exclusively explained to our newspaper that the security has not been assigned an ISIN code yet. South Korean securities firms must submit settlement instructions to KSD when trading this security as Qualified Foreign Investors (QFI). The submission of settlement instructions requires the use of an ISIN code. Therefore, relevant South Korean securities firms have chosen to temporarily use a temporary virtual code, and the name of this security is displayed based on the virtual ISIN.

The KSD Securities Data Department further stated that this security is only traded on China's Sci-Tech Innovation Board (STAR Market) and has not been included in the Shanghai-Hong Kong Stock Connect mechanism. Therefore, relevant information about this security can only be retrieved through its local code (688825) at present.

And this code exactly corresponds to Changxin Technology, which was recently listed on the STAR Market.

Since Changxin Technology has not been included in the Stock Connect mechanism, South Korean investors can only buy it through the Qualified Foreign Investor (QFI) channel at present.

Up to now, overseas investors can buy A-shares through the Stock Connect mechanism or the QFI channel. For the Stock Connect channel, investors do not need to apply for qualifications and can buy through the Hong Kong Stock Exchange platform; for the Qualified Foreign Investor channel, investors need to apply for QFI qualification. At present, the application process has been significantly simplified compared with before.

South Korean investors' large-scale purchase of Changxin Technology has significantly increased their total net purchase amount of A-shares as a whole.

As of August 18, in the past month, South Korean investors made a net purchase of US$45.3222 million of Changxin Technology, and a net purchase of US$44.27 million of the Hong Kong shares of Zhongji Xuchuang. The former is the A-share stock with the largest net purchase amount, and the latter is the Hong Kong stock with the largest net purchase amount.

In addition, the reporter's search on SEIBro found that as of July 28, Changxin Technology had appeared in the list of stocks with the top net purchase amount by South Korean investors in the previous week. However, as of July 27, Changxin Technology was not in the list of top 50 A-share stocks by net purchase amount of South Korean investors in the previous week (it is also possible that South Korean investors had already bought the stock, but Changxin Technology did not enter the top 50 A-share stocks by net purchase amount ranking). This shows that no later than July 28, the second day after Changxin Technology went public, South Korean investors had started buying it.

In addition to Changxin Technology, SEIBro data shows that as of August 18, the A-share stocks (ETFs) with larger purchase amounts by South Korean investors in the past month include: Weichai Power, Demingli, JCET, Harvest STAR Market Chip ETF, China National Chemical Engineering, Hangyu Technology, Advanced Micro-Fabrication Equipment, KEHUA DATA, China Jushi.

As of August 18, in the past month, in addition to Zhongji Xuchuang, the Hong Kong stocks with larger purchase amounts by South Korean investors include Tianrui Automotive Interiors, ChinaAMC CSI 300 Index ETF, Minsheng Capital Holdings Limited, CSOP Hang Seng Tech ETF, etc.

Overseas active ETFs quickly included the stock on its listing day

The listing of Changxin Technology has aroused enthusiastic response overseas. On July 27, the listing day of Changxin Technology, Tema ETFs announced that it had included Changxin Technology in the position of Tema Memory ETF (ticker: DISK), making it one of the heavyweight holdings of the fund with a weight of 10.56%. DISK thus became the US-listed ETF with the highest exposure to Changxin Technology.

Yuri Khodjamirian, Chief Investment Officer of Tema ETFs, said that the continuously growing AI demand and the global storage supply shortage have driven storage prices and profits to rise sharply. Among the world's leading storage manufacturers, Changxin Memory has a unique positioning and can serve China's fast-growing AI ecosystem. DISK completed the investment on the morning of the IPO day of Changxin Storage, which reflects the active adaptability and professional judgment required to capture such investment opportunities that are inaccessible to most investors.

After that, another active ETF, Roundhill Memory ETF (DRAM), also quickly included Changxin Technology. In addition, global index giants have also taken action. For example, the MSCI China All Shares Index has also included Changxin Technology, and ETFs tracking this index will passively buy Changxin Technology.

Previously, VanEck also said in an interview with our newspaper that its China Semiconductor ETF could include Changxin Technology as soon as September.

This article is from the WeChat official account "China Fund News" (ID: chinafundnews), author: Wu Juanjuan, authorized for release by 36Kr.