The experiments of stemflow of two semiarid shrubs (Caragana korshinskii and Hippophae rhamnoides) and its effect on soil water enhancement were conducted from 1st May to 30th September of 2009–2013 in the Chinese Loess Plateau. Stemflow values in C. korshinskii and H. rhamnoides averaged 6.7% and 2.4% of total rainfall. The rainfall threshold for stemflow generation was 0.5 and 2.5 mm for C. korshinskii and H. rhamnoides. When rainfall was less than 17.0 mm, the funnelling ratios were highly variable, however, stable funnelling ratios were found for rainfall greater than 17.0 mm for C. korshinskii. The funnelling ratios of H. rhamnoides first increased until a threshold value of 10.0 mm and then the funnelling ratios begin stabilize. The wetting front depths in the area around stem was 1.4–6.7 and 1.3–2.9 times deeper than area outside the canopy for C. korshinskii and H. rhamnoides. Soil moisture at soil depth 0–200 cm was 25.6% and 23.4% higher in soil around stem than that outside canopy for C. korshinskii and H. rhamnoides. The wetting front advanced to depths of 120 and 100 cm in the area around stem and to depths of 50 cm in the area outside the canopy for C. korshinskii and H. rhamnoides suggested that more rain water can be conserved into the deep soil layers through shrub stemflow. Soil moisture was enhanced in the area outside the shrub canopy, only when rainfall depth is > 4.7 and 5.1 mm, which is an effective rainfall for the area for C. korshinskii and H. rhamnoides. While for the area around stem of C. korshinskii and H. rhamnoides, the corresponding threshold values are 3.2 and 4.3 mm. These results confirmed that stemflow has a positive effect on soil moisture balance of the root zone and the enhancement in soil moisture of deeper soil layers.