South Korean capital is ramping up purchases of Changxin Technology, and several leading semiconductor giants have also received increased positions.

The volatility in the technology sector continues this week, but some overseas capital is accelerating the allocation of core targets in China's semiconductor sector.

Among them, South Korean investors have significantly accelerated the pace of buying into Changxin Technology. From the listing date of Changxin Technology on July 27 to last Friday, the cumulative amount of South Korean investors' purchases of this stock was only 361,000 US dollars. However, in just the first three trading days of this week, South Korean investors' purchase amount of the company reached as high as 2.6399 million US dollars, with zero sales, showing a firm holding attitude.

In addition to Changxin Technology, individual semiconductor stocks such as Naura, GigaDevice, and Demingli have also continued to receive net purchases from South Korean capital this week. Although the volatility of many core individual stocks in the semiconductor sector has intensified recently, short-term fluctuations will not change the medium and long-term industrial trend. Industry insiders believe that after the previous adjustment, the allocation cost-effectiveness of many core individual stocks in the semiconductor industry has increased significantly, which is also one of the important reasons why some foreign capitals are accelerating their layout.

South Korean investors accelerate buying Changxin Technology this week

This week, South Korean investors have shown a clear accelerated buying trend for Changxin Technology. Changxin Technology was listed on July 27 this year. From the listing date of the company to last Friday, October 23, the amount of South Korean investors' purchases of Changxin Technology was only 361,000 US dollars. In the first three trading days of this week alone, South Korean investors' purchases of Changxin Technology have exceeded 2.5 million US dollars.

Specifically, data from the Korea Securities Depository shows that during the three trading days from Monday to Wednesday this week, South Korean investors' purchases of Changxin Technology amounted to 2.6399 million US dollars. It is worth noting that South Korean investors made zero sales of Changxin Technology in the first three trading days of this week, showing a firm holding status.

In terms of net purchase amount, in the first three trading days of this week, Changxin Technology ranks first in the list of net purchases of all A-share securities by South Korean investors, and its net purchase amount is 3 times higher than that of the second place.

Since October, the share price of Changxin Technology has fluctuated downward. Industry insiders believe that South Korean investors accelerating their layout this week means that some South Korean capitals judge that the company has now entered a range with allocation value.

In addition to Changxin Technology, South Korean capital has also maintained a net buying status for individual stocks in the semiconductor industry chain such as Naura, Demingli, and GigaDevice this week.

Although the volatility of targets in the domestic semiconductor industry chain has intensified recently, their medium and long-term allocation value still has strong attractiveness, which is also one of the important reasons why some foreign capitals are accelerating their layout.

Chen Wenyu, Deputy General Manager of Invesco Great Wall Fund, emphasized that "short-term changes in market sentiment have not changed the positive progress at the industrial level, and we still firmly believe in the long-term trend of China's technology industry. After years of technological accumulation and industrial investment, domestic substitution has been comprehensively promoted in many key fields, gradually moving from local breakthroughs to coordinated development of all links in the industrial chain, and industrial competitiveness is continuously enhanced. Short-term market fluctuations may instead provide a good research and entry window for long-term layout."

Song Weiwei, index fund manager of China Asset Management, also expressed optimism about the medium and long-term opportunities of the domestic computing power industry chain. Song Weiwei believes that the industrial trend of domestic computing power is a "slow variable", while liquidity, trading congestion and risk preference are "fast variables". Since July, the market liquidity has contracted periodically, and capital has turned to directions with small gains this year and more defensive attributes, and the valuation of the domestic computing power sector has been significantly compressed accordingly. However, it should be noted that the orders and delivery of domestic computing power are mainly driven by domestic AI capital expenditure and the domestic substitution process, which are not synchronized with the traditional storage cycle, optical fiber prosperity and the Federal Reserve's interest rate cycle. The long-term industrial direction has not changed, and the periodic fall in valuation has instead improved the medium and long-term allocation cost-effectiveness of the sector.

China's semiconductor industry chain has medium and long-term allocation value

Looking forward to a longer cycle in the future, the medium and long-term growth potential of China's semiconductor industry chain is also worth looking forward to.

Chen Wenyu from Invesco Great Wall Fund believes that in the past two years, driven by the unprecedented artificial intelligence wave, the world's major markets have experienced a resonance rally of technology stocks. Relying on the advantages of the whole industrial chain and the dividend of engineers, China has developed strong competitiveness and industrial status in links such as AI large models, computing power industrial chain and semiconductors.

Chen Wenyu emphasized that investing in technology growth stocks should be more based on the long-term industrial trend, closely track technological evolution and fundamental changes, reasonably grasp valuation and pricing, strictly abide by investment discipline and risk control bottom line, ignore short-term fluctuations, and actively grasp the long-term layout opportunities brought by short-term event shocks and sentiment fluctuations, and strive to share the long-term growth dividend in the development of China's technology industry and the process of independent controllability.

Zheng Xiaoxi from Southern Fund also believes that the domestic semiconductor industry will continue to break through key bottlenecks, and 2026 is expected to kick off the expansion of the advanced process chip manufacturing industry chain. On the policy side, with the "National Integrated Circuit Industry Development Promotion Outline" as the general guideline, superimposed with the special deployment of the 14th Five-Year Plan and the 15th Five-Year Plan, covering the whole chain of design, manufacturing, packaging and testing, equipment and materials; at the same time, supporting policies for industrial clusters in Shanghai, Beijing, Shenzhen, Hefei, Wuxi and other places have been implemented, forming a national-local linkage. On the capital side, a multi-layer investment structure of "national big fund + local fund + social capital" has been formed: the first phase of the national big fund of 138.7 billion yuan and the second phase of 204.2 billion yuan have completed their layout, and the third phase of 344 billion yuan has entered a period of intensive investment, focusing on completing and strengthening the industrial chain, tackling the shortcomings of advanced processes and equipment. In addition to the big fund, the scale of local integrated circuit industry funds has exceeded one trillion yuan.

This article is from the WeChat official account "ChiNext Observer", author: Li Di, published by 36Kr with authorization.