Chinese telecom giant Zhongji InnoLight (中際旭創) has emerged as the top net purchase among Korean retail investors, known as '중학개미', on the Hong Kong stock market this second half of the year. Since its listing at the end of last month, the stock has attracted significant buying interest from Korean investors despite its price volatility.
According to the Korea Securities Depository, from July 8 to August 7, Zhongji InnoLight was the leading net purchase for domestic investors in the Hong Kong market, with a net buying amount reaching $43.39 million (approximately 61.4 billion won).
This figure is about 3.9 times larger than the second-ranked stock, Chinese auto parts manufacturer Tianlui, which saw net purchases of $11.02 million.
Notably, Zhongji InnoLight was newly listed on the Hong Kong stock exchange on July 30. In just seven trading days post-listing, Korean investors' net purchases exceeded $40 million.
Zhongji InnoLight is a global leader in manufacturing optical transceivers essential for AI data center construction, holding a 27% share of the global data transceiver market, with 90% of its revenue generated from overseas.
Global institutions and major Chinese tech companies, including Temasek, Abu Dhabi Investment Authority, Hillhouse Capital, BlackRock, JP Morgan Asset Management, Alibaba, and Tencent, have also invested in Zhongji InnoLight.
The company raised up to HK$61.4 billion through its Hong Kong listing, making it the largest IPO in the city this year. The public offering attracted significant investor interest, with total subscriptions reaching HK$719.9 billion, resulting in oversubscription by more than 13 times.
However, the stock's performance has not met expectations since its debut. On the first day of trading, the stock price fell about 2% from the offering price of HK$980. Additionally, news earlier this month about the U.S. considering further regulations on Chinese telecom equipment caused significant price fluctuations. Despite this, the buying momentum from Korean investors has persisted.
Chinese online media outlet Jiemian noted the influx of bargain-hunting by Korean investors in Zhongji InnoLight. It reported, “Korean retail investors have a high preference for active trading and high-growth tech stocks. Particularly, the sharp decline in the Korean stock market in July has increased market volatility, prompting some investors to diversify their investments overseas.”
Furthermore, it stated, “Korean investors possess a strong understanding and research capability in hardware technology sectors such as semiconductors and optical communications, allowing them to actively invest in companies like Zhongji InnoLight despite market volatility.”
Not only Korean investors but also global investment banks are actively purchasing shares of Zhongji InnoLight. According to the Hong Kong Stock Exchange, JP Morgan Chase increased its stake from 5.6% on July 31 to 13.48% on August 4. Goldman Sachs also saw its stake grow from 5.95% to over 12.19% during the same period. Morgan Stanley raised its stake from 5.92% to 6.23%.
* This article has been translated by AI.
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