SEIBro data shows that Korean investors purchased Changxin Technology through QFI at the first opportunity.
Data from SEIBro, under the Korea Securities Depository (KSD), shows that as of August 18, over the past month, the A-share stock with the highest purchase amount by Korean investors was a mysterious stock. During this period, Korean investors net purchased this stock for $45.322233 million (approximately 307.53 million yuan). Extending the period to the past three months, this stock still ranked first on the list of A-shares with the highest net purchases by Korean investors.
SEIBro data shows that this stock currently has no ISIN code. ISIN is a 12-digit International Securities Identification Number compiled according to the ISO 6166 standard, providing a globally unique identifier for each security. It is widely used in cross-border trading and registration/settlement and is independent of the security codes used internally by exchanges. After completing necessary procedures, each security has a unique ISIN code globally.
Which company is behind this stock? How did Korean investors buy it?
Regarding this, the KSD Securities Data Department exclusively explained to this newspaper that this security has not yet been assigned an ISIN code. When Korean securities companies, acting as Qualified Foreign Investors (QFI), trade this security, they must submit settlement instructions to KSD. Submitting settlement instructions requires using an ISIN code. Therefore, the relevant Korean securities companies chose to temporarily use a provisional virtual code, and the name of this security is displayed based on this virtual ISIN.
The KSD Securities Data Department further stated that this security is only traded on China's STAR Market and has not been included in the Shanghai-Hong Kong Stock Connect mechanism. Therefore, currently, information about this security can only be retrieved using its local code (688825).
And this code belongs to Changxin Technology, which was recently listed on the STAR Market.
As Changxin Technology has not yet entered the Stock Connect mechanism, Korean investors can currently only purchase it through the Qualified Foreign Investor (QFI) channel.
To date, overseas investors can buy A-shares through either the Stock Connect channel or the QFI channel. Using the Stock Connect channel, investors do not need to apply for qualifications and can buy through the Hong Kong Exchange platform; using the Qualified Foreign Investor channel, investors need to apply for QFI qualification. Currently, the application process has been significantly simplified.
The large purchases of Changxin Technology by Korean investors have significantly increased their overall net purchase amount of A-shares.
As of August 18, over the past month, Korean investors net purchased $45.3222 million worth of Changxin Technology and $44.27 million worth of Zhongji Innolight (H shares). The former is the A-share stock with the largest net purchase amount, and the latter is the H-share stock with the largest net purchase amount.
Furthermore, a search of SEIBro by this reporter revealed that as of July 28, Changxin Technology had already appeared among the stocks with the highest net purchases by Korean investors in the previous week. As of July 27, Changxin Technology was not on the list of the top 50 A-share stocks by net purchase amount for Korean investors in the previous week (it is also possible that Korean investors had already bought it, but Changxin Technology did not enter the top 50 A-share stock list by net purchase amount). This indicates that, at the latest on July 28, the second day of Changxin Technology's listing, Korean investors had already started buying.
Besides Changxin Technology, SEIBro data shows that as of August 18, over the past month, other A-share stocks (including ETFs) that Korean investors bought in larger amounts included: Weichai Power, Demingli, Changdian Technology, STAR Chip ETF Harvest, China National Chemical Engineering, Hangyu Technology, AMEC, Kehua Data, China Jushi.
As of August 18, over the past month, H-share stocks that Korean investors bought in larger amounts, besides Zhongji Innolight, included Tianrui Automotive Interior, CSOP CSI 300 Index ETF, CMBC Capital Holdings Limited, CSOP Hang Seng Tech ETF, etc.
Listed on the same day, overseas active ETFs quickly included it
The listing of Changxin Technology sparked a strong response overseas. On July 27, the very day Changxin Technology was listed, Tema ETFs announced that it had included Changxin Technology in the holdings of the Tema Memory ETF (ticker: DISK), making it one of the fund's top holdings 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, stated that with increasing AI demand, a global shortage of memory supply is pushing memory prices and profits significantly higher. Among the world's leading memory manufacturers, Changxin Storage has a unique position, capable of serving China's rapidly growing AI ecosystem.The investment by DISK was completed on the morning of Changxin Storage's IPO day, demonstrating the proactive responsiveness and professional judgment needed to capture such investment opportunities that are out of reach for most investors.
Subsequently, another active ETF, the Roundhill Memory ETF (DRAM), also quickly included Changxin Technology. Furthermore, global index giants took action. For example, the MSCI China All Shares Index has also included Changxin Technology, and ETFs tracking this index will passively purchase Changxin Technology.
Previously, VanEck, in an interview with this newspaper, also indicated that its China Semiconductor ETF could include Changxin Technology as soon as September.
This article is from the WeChat public account "China Fund News" (ID: chinafundnews), author: Wu Juanjuan
