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- Investment News
China's investment in the Korean financial market will quadruple in 2015, according to an International Financial Center report last month titled "Outlook on Inflow of Chinese Money into the Global Market."
Chinese money that will flow into Korea for the next two or three years is expected to reach $400 million to $1.5 billion, said the report, which indicated that increasing overseas investment is a top priority in China's three-phase plan for financial openness. The opening of the Chinese financial market will lead to a flood of Qualified Domestic Institutional Investors (QDII) eyeing the Korean financial market for investment.
If the limit on QDII increases to five percent of the market capitalization
as initially planned, total Chinese QDII investment will triple to $229.3 billion.
The investment forecast of $400 million to $1.5 billion was reached considering
that Korea accounts for 4.6 percent of China's overseas QDII investment. In
particular, Korea's manufacturing and service industries will be the biggest
beneficiaries, accounting for 55.2 percent and 20.5 percent, respectively, of
China's total QDII investment in Korea.