The Chinese stock market is expected to enter an upward trend this month, bolstered by enhanced stimulus measures. Promising sectors include technology stocks such as biotech and robotics, as well as export-oriented industries like shipbuilding and machinery.
On September 21, the China Capital Market Research Association held a seminar titled 'Eighteen Years of Looking at China, Asking Again About China's Future' at the Financial Investment Association in Yeouido. This seminar was organized to commemorate the 18th anniversary of the association's founding and its 200th seminar.
During the seminar, experts emphasized the need for a precise understanding of the Chinese economy. Choi Young-jin, chairman of the China Capital Market Research Association and vice president of Hanwha Asset Management, stated, "We need to examine how accurately we understand China's technology and manufacturing competitiveness. We should not underestimate China based on familiar perceptions, nor should we overestimate it based on isolated successes."
In the second half of the year, China's economy is projected to gradually recover in consumption due to strengthened stimulus measures. Kim Kyung-hwan, head of the China and Emerging Markets Strategy Team at Hana Securities, noted, "While measures to boost service consumption and address employment issues remain insufficient, stimulus measures will begin this month. AI products will lead the increase in exports, and other products will also show solid export performance. Notably, the export share of semiconductors and computing-related products is expected to exceed 15% for the first time in history."
There are also forecasts that the Chinese stock market will enter a bullish phase in the second half. Kim Kyung-hwan added, "The Chinese stock market is expected to rebound due to upward adjustments in earnings forecasts, the effects of economic stimulus measures, the peak season for consumption and real estate, and the impact of U.S.-China summits. The market has withstood external challenges such as interest rates and internal supply-demand shocks, and it appears to have secured its own upward momentum starting in September."
Specifically, growth stocks are expected to outperform value stocks. Given the transition to a growth model, policy direction, and a low-interest, liquid environment, growth stocks are assessed to be more favorable than value stocks. Among technology stocks, biotech, robotics, and securities are gaining attention, while sectors expected to see improved export performance include shipbuilding, machinery, and electrical equipment.
In the context of geopolitical crises, there are calls for South Korea to accurately understand the U.S.-China power struggle and develop sophisticated strategies. It is essential to establish what competitive advantages South Korea can present amid changes in China and to consider areas for potential cooperation.
Lee Chi-hoon, head of the Global Economic Analysis Division at the International Financial Center, emphasized, "We need to actively leverage the U.S. strategy to contain China as an opportunity. South Korea is the only country with strong manufacturing capabilities that has free trade agreements (FTAs) with both the U.S. and China. We should view the G2 rivalry as an opportunity and utilize it effectively."
Semiconductor technology, a key area in the U.S.-China rivalry, is highlighted as a crucial factor in redefining relations with the G2. Lee stated, "Without strong technological capabilities, not only will China's pursuit be hindered, but our importance in international relations with countries like the U.S. may also significantly decline. Maintaining competitiveness in semiconductors, a core area of U.S.-China rivalry, is of utmost importance."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.