"Are Retail Investors Turning Here After Missing Samsung and SK Hynix?... This ETF Surged 42% in a Month"

TIGER China Semiconductor Ranks First in One-Month Returns
Growth Driven by China’s Push for Semiconductor Self-Sufficiency
CXMT and YMTC, the Two Memory Giants, Poised for Listing

Chinese semiconductor ETFs are seeing a significant surge in returns. This is due to growing expectations for companies listed on the STAR Market, often referred to as the "Chinese Nasdaq," as China pushes for greater self-sufficiency in its semiconductor value chain. Additionally, the upcoming listings of major companies are expected to provide further momentum.

According to ETF Check, six of the top 10 performing products in the past month were related to Chinese semiconductors. Getty Images

According to ETF Check on May 22, six out of the top 10 performing products over the past month were related to Chinese semiconductors. TIGER China Semiconductor FACTSET ranked first with a monthly return of 41.73%. KODEX China AI Semiconductor TOP10 recorded 34.17%, securing third place, while RISE China AI Semiconductor TOP4Plus posted a return of 32.82%, ranking sixth. In addition, KODEX China STAR50 (Synthetic), which is composed of major STAR Market stocks, achieved 32.00%, ranking eighth.

The driving force behind these results is the expansion of advanced manufacturing capabilities such as semiconductors within China. As China continues its push for self-sufficiency in the semiconductor and AI value chain, national-level support is expected to follow. Kyuho Choi, an analyst at Hanwha Investment & Securities, explained, "The Chinese government is seeking to improve the structure of its economy through qualitative growth by fostering advanced manufacturing industries. While this year's growth rate is likely to be lower than last year, we believe that the medium- to long-term growth momentum led by advanced industries will not weaken."

An official from Mirae Asset Global Investments stated, "As the global AI investment cycle continues, domestic demand for AI semiconductors and memory in China is increasing, and major companies such as Huawei are also expanding their adoption of domestic chips. Since the STAR Market itself is a market focused on semiconductor and hard-tech companies, this structure amplifies the index's momentum whenever such themes are in the spotlight, which explains the recent strength." The official added, "From an investment perspective, the U.S.-China conflict is paradoxically increasing the penetration rate of domestically produced products in China, and import substitution itself is a key driver of long-term growth."

Furthermore, large semiconductor-related IPOs are expected to take place on the STAR Market. The main players are YMTC (Yangtze Memory) and CXMT (Changxin Memory), which are China's two leading memory companies. CXMT's STAR Market IPO review status has reportedly changed from 'suspended' to 'inquiry.' On May 19, YMTC entered the 'listing guidance' process, according to the China Securities Regulatory Commission. In the first quarter of this year, CXMT recorded sales of 50.8 billion yuan (approximately 11.2364 trillion won), a 719% year-on-year increase, while its net profit reached 24.8 billion yuan (about 5.4855 trillion won), up 1,688% over the same period.

As a result, securities industry experts are paying close attention to ETFs that track the Star50 Index, which consists of 50 large-cap and highly liquid stocks within the Chinese semiconductor theme or the STAR Market. Jinyoung Kim, an analyst at Kiwoom Securities, stated, "If CXMT and YMTC are listed on the STAR Market, there is a possibility that they could be included in the Star50 Index within one to three months due to their market capitalization. Investors can respond with ETFs that track the Chinese semiconductor theme and the Star50 Index."

Once CXMT and YMTC are listed, there is also a chance that they may be included in Korean ETFs. Sangwoo Jung, Head of ETF Management Division at KB Asset Management, explained, "These two companies represent DRAM and NAND memory semiconductors in China, respectively, so after listing, they could become important candidates for ETF inclusion. However, they will not be automatically included immediately after listing; actual inclusion will be determined based on whether they meet the criteria of the underlying index methodology."

This content was produced with the assistance of AI translation services.