China's Tech Ecosystem Draws Global Investors as Korean and Japanese AI Plays Become Crowded

Investors are shifting their focus to Chinese equity derivatives for AI exposure as Korean and Japanese plays become crowded, according to recent trends in offshore perpetual futures markets. The shift is particularly visible on platforms like Hyperliquid and tradeXYZ, where global capital is seeking exposure to Chinese AI infrastructure, chipmaking, and robotics companies.

The numbers behind the rotation are striking: perpetual futures tied to Unitree Robotics surpassed $105 million in trade volume within a 24-hour window following its IPO. CXMT, a Chinese memory chipmaker, saw offshore perpetual futures register roughly $66 million in open interest shortly after its July 2026 listing.

The shift away from South Korean and Japanese AI stocks is due to their high valuations. SK Hynix and TSMC remain dominant in the global semiconductor supply chain, but their valuations now reflect that dominance. In contrast, Chinese hyperscalers and chipmakers face lower capital expenditure requirements compared to their US and Korean counterparts.

Perpetual futures offer a workaround for foreign investors who can't easily buy shares on the Shanghai or Shenzhen exchanges, providing a liquid and fast access layer to these synthetic instruments. However, the regulatory picture is complicated, with Chinese authorities periodically cracking down on speculative trading activity.