Woofun AI data shows that South Korean funds accumulated a net inflow of $2.819 billion in Chinese assets during the first half of 2026, driven by a 130.55% year-on-year surge in A-share purchases totaling $678 million. In the week of July 13-19, Cambricon Technologies led weekly net inflows with $2.8577 million, while Horizon Robotics and other semiconductor firms also saw significant buying pressure.

This capital rotation coincides with a sharp retracement in the South Korean KOSPI index, which fell over 27% from its peak, alongside declines exceeding 30% for major chipmakers Samsung Electronics and SK Hynix.

Concurrently, Goldman Sachs advised reducing exposure to South Korean AI assets in favor of the Chinese AI value chain, citing valuation upside potential supported by policy measures and domestic substitution trends.