HONG KONG ― South Korean securities firms’ investment in China rose nearly six-fold on-year in the first half of this year due to China’s growing importance as the world’s No. 2 economy, Seoul’s financial regulators said Monday.
Investments made in mainland China by South Korean brokerages totaled 197.8 billion won ($ 31.1 billion) as of the end of June, up 598.9 percent from the previous year, said Financial Supervisory Service officials in Hong Kong.
The tally includes money spent on purchasing Chinese assets, such as equities and bonds, as well as investments made in Chinese subsidiaries and units.
The South Korean brokerage firms’ investment in Hong Kong, a financial hub for China, increased 232.5 percent to 180.9 billion won.
China and Hong Kong together made up 15 percent of the total overseas investments made by the South Korean securities firms, which was amounted to 2.48 trillion won.
China has witnessed robust growth in its economy during the last 30 years, surpassing Japan last year as the world’s No. 2 economy. It now eyes a similar leading position in the international financial system.
The overall size of China’s capital markets is expected to continue expanding with the bond market reaching US$10 trillion and stock markets also reaching $10 trillion by 2013.
Hong Kong has long served as a major gateway through which China can raise foreign capital, while Shanghai is gradually being promoted for its increasing role as mainland China’s financial center.
(Yonhap News)
