Chinese investors bought Korean shares and bonds worth 3.22 trillion won (US$3.11 billion) in the first nine months of the year to outdo investors from the United States and Japan, data showed Wednesday.

China's net buying of South Korean shares amounted to 2.51 trillion won as of end-September, trailing behind the U.S. and Japan, but its purchase of 1.18 trillion won in Korean bonds far surpassed other countries to make it the No. 1 source of foreign investment in South Korea, according to the Financial Supervisory Service (FSS). 

The U.S. was second with 3.12 trillion won in net purchase and Japan took third with 2.59 trillion won. 

In contrast, British investors swung to massive selling of local shares and bonds worth 6.25 trillion won in the January-September period. Luxembourg and Germany withdrew 1.79 trillion won and 1.11 trillion won, respectively, FSS data showed. 

The overall value of Korean bonds held by Chinese was tallied at 13.69 trillion won at the end of September, coming second after the U.S. with 19.21 trillion won. Chinese also have Korean stocks worth 9.95 trillion won. 

Financial experts say the inflow of Chinese money is the result of the Asian giant's growing capital and Beijing's push to expand investment overseas.

"The Chinese funds coming into the Korean market are mainly sovereign wealth funds, which are owned by the government," an FSS official said. "Chinese are buying Korean funds not only in the Korean market but also in the offshore financial markets." (Yonhap)