The monetary policy of the People's Bank of China (PBoC) and the trend of the Chinese Yuan (CNY) are critical variables determining foreign capital flow and export competitiveness in the South Korean stock market. Here is an analysis of how these factors impact the Semiconductor and Secondary Battery sectors.

1. Semiconductor: Foreign Capital Inflow

South Korea's Won (KRW) often moves in sync with the Chinese Yuan (CNY). This correlation significantly affects semiconductor stocks, which have high market capitalization.

• Yuan Appreciation: As the Yuan strengthens, foreign investors tend to increase their stakes in KOSPI heavyweights like Samsung Electronics and SK Hynix.
• Demand Recovery: Interest rate cuts in China can stimulate local consumption of IT devices, leading to increased exports of memory semiconductors.

2. Secondary Battery: Cost vs. Competition

The battery industry faces a more complex situation due to its high dependency on Chinese raw materials.

• Yuan Depreciation: A weaker Yuan reduces the cost of importing key materials like lithium and precursors, potentially improving profit margins for Korean battery makers.
• Competitive Risk: Conversely, a weak Yuan enhances the price competitiveness of Chinese competitors (e.g., CATL, BYD) in the global market.

Market Impact Summary