What if China and the US join hands? Virtually... | Kim Kyung-hwan, Hana Securities Research Center Team Leader

Summary

Kim Kyung-hwan, Team Leader at Hana Securities Research Center, reviews China's market after hot IPOs from CXMT and Unitree. He sees China's export cycle as structurally strong and diversified even outside AI, while domestic demand remains weak. He recommends selective China exposure via the robotics ecosystem, semiconductor equipment/materials/back-end suppliers and the STAR Market index, while noting Korean cosmetics and inbound tourism as China-related beneficiaries. He expects the US-China meeting to deliver only a ceasefire extension, not a shock easing.

• CXMT became China's top market-cap semiconductor IPO but its STAR 50 index inclusion was rejected in September; December inclusion also looks unlikely.
• Unitree surged on debut but halved on valuation concerns; the broader Chinese robot theme is now seen as a buy.
• China exports ex-AI are still growing about 20%, with broad regional and product diversification.
• Chinese domestic demand remains a structural slump as credit and spending contract.
• Korean cosmetics and inbound tourism beneficiaries are cited as China-demand winners.
• Within China tech, equipment, materials and back-end suppliers are preferred over memory price exposure; the STAR Market index is recommended.
• US-China talks are expected to extend the current ceasefire without a major shock deal.