How do I invest in Chinese stocks?

The easiest way to invest in the whole Chinese stock market is to invest in a broad market index. This can be done at low cost by using ETFs.

On the Chinese stock market youll find 13 indices which are tracked by ETFs. The speciality of China are the three categories of Chinese stocks: A-stocks, B-stocks and H-stocks.

Besides Hong Kong listed stocks, indices on Emerging Markets or Asia can be invested alternatively.

0.19% p.a. - 0.88% p.a.

annual total expense ratio (TER) of China ETFs

on the Chinese stock market, which are tracked by ETFs

on the Chinese stock market

The

Performance of Chinese stocks (Hang Seng China Enterprises (HSCEI))

Indices in comparison

Indices on Chinese stocks

The best indices for ETFs on China

For an investment in the Chinese stock market, there are 13 indices available which are tracked by 22 ETFs. The speciality of investing in China are the different categories of Chinese stocks. The total expense ratio (TER) of ETFs on these indices is between 0.19% p.a. and 0.88% p.a..

Index Investment focus Number of ETFs Number of constituents Short description

CSI 300

China 2 ETFs 300
The CSI 300 index tracks 300 stocks with the largest market capitalisation and liquidity from the entire universe of listed A share companies in the People’s Republic of China.
Index factsheet

Dow Jones China Offshore 50

China 1 ETF 50
The Dow Jones China Offshore 50 index tracks the largest companies whose primary operations are in mainland China but that trade on exchanges in Hong Kong or the U.S.
Index factsheet

FTSE China 30/18 Capped

China 1 ETF 999
(30.07.21)
The FTSE China 30/18 Capped tracks Chinese companies with large and medium market capitalisation whose shares are listed on stock exchanges in China (A shares) or outside China (B shares, H shares, P chips, red chips, S chips, N shares). The largest company in the index is limited to a maximum of 30 percent of the index capitalization, all other index components to a maximum of 18 percent.
Index factsheet

FTSE China 50

China 2 ETFs 50
The FTSE China 50 index tracks the 50 largest and most liquid Chinese companies listed on the Hong Kong Stock Exchange (H-Shares, Red Chips und P Chips).
Index factsheet

FTSE China A-H 50

China 1 ETF 50
The FTSE China A-H 50 index tracks the 50 largest Chinese A-Shares listed on the Shanghai or Shenzen stock exchanges. Each company will be represented either by its A-share or by its H-share.
Index factsheet

FTSE China A50

China 1 ETF 50
The FTSE China A50 index tracks the 50 largest Chinese A-Shares listed on the Shanghai or Shenzen stock exchanges in local currency.
Index factsheet

Hang Seng China Enterprises (HSCEI)

China 1 ETF 50
(30.07.21)
The Hang Seng China Enterprise index (HSCEI) tracks the most important Chinese H-Shares, listed on the Hong Kong stock exchange.
Index factsheet

MSCI China

China 5 ETFs 730
(30.07.21)
The MSCI China index tracks the largest and most liquid Chinese stocks, listed on the Hong Kong stock exchange (H-Shares, B-Shares, Red Chips, P Chips).
Index factsheet

MSCI China A

China 3 ETFs 707
(30.07.21)
The MSCI China A index tracks the largest and most liquid Chinese A-Shares, denominated in Renminbi (RMB) and listed on the Shenzhen and/or Shanghai stock exchanges. This index reflects Mainland China A-share securities from a domestic investor’s perspective.
Index factsheet

MSCI China A Inclusion

China 2 ETFs 481
(30.07.21)
The MSCI China A Inclusion index tracks China A-Shares also included in the MSCI Emerging Markets.
Index factsheet

MSCI China All Shares Stock Connect Select

China 1 ETF 736
(30.07.21)
The MSCI China All Shares Stock Connect Select index tracks large and mid cap Chinese securities. The stock selection includes share classes listed in Shanghai or Shenzhen (A-Shares, B-Shares), Hongkong (H-Shares, Red-chips, P-chips) as well as foreign listings
Index factsheet

MSCI China H

China 1 ETF 81
(30.07.21)
The MSCI China H index tracks the largest and most liquid Chinese H-Shares, listed on the Hong Kong stock exchange.
Index factsheet

S&P China 500

China 1 ETF 500
The S&P China 500 index tracks the 500 largest and most liquid Chinese companies (all share classes including A-shares and offshore listings).
Index factsheet

Source: justETF.com; As of 31.07.21; Calculations in EUR based on the largest ETF of the respective index.

The best China ETFs
by 1 year return

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The cheapest China ETFs
by total expense ratio (TER)

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Compare all ETFs on China

Speciality

The three categories of Chinese stocks

Chinese A-stocks (A-Shares): Stocks of Chinese companies that are listed on the Shanghai or Shenzhen stock exchange and traded in local currency.

This category has been exclusive to Chinese investors. However, professional foreign investors with a special license are able to invest in these stocks under certain restrictions.

Chinese B-stocks (B-Shares): Stocks of Chinese companies that are listed on the Shanghai or Shenzhen stock exchange and traded in foreign currency.

This category has been open for foreign investments. Since the restrictions on A-Shares have been lowered, these shares tend to be losing liquidity.

Hong Kong H-stocks (H-Shares): Stocks of Chinese companies that are listed on the Hong Kong stock exchange and traded in Hong Kong Dollar (HKD).

This category has been open for foreign investments as well. Most institutional investors prefer H-stocks due to their relatively high liquidity.

Alternative investment opportunities

Indices on Hong Kong

Indices on Hong Kong listed stocks

Besides China ETFs you can invest in ETFs on the Hong Kong stock market. In order to invest in Hong Kong there is 1 index, which is tracked by 1 ETF. The total expense ratio (TER) of ETFs on Hong Kong is around 0.65% p.a..

Index Investment focus Number of ETFs Number of constituents Short description
Hang Seng (HSI) Hong Kong 1 ETF 58
(30.07.21)
The Hang Seng index (HSI) tracks the largest and most liquid blue chip stocks listed on the Hongkong stock exchange.
Index factsheet
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
Hang Seng (HSI) -9.75% -7.18% -4.88% 6.64% -3.81%
Index   2021
in %
2020
in %
2019
in %
2018
in %
2017
in %
Hang Seng (HSI) -0.06% -9.20% 14.27% -7.42% 21.53%

Source: justETF.com; As of 31.07.21; Calculations in EUR based on the largest ETF of the respective index.

Indices on Emerging Markets

Emerging markets indices with a large share of China

As second alternative you can consider ETFs on emerging markets. Currently, you can invest in 3 emerging markets indices tracked by 16 ETFs. The total expense ratio (TER) of ETFs on BRIC countries is between 0.14% p.a. and 0.74% p.a..

Index Investment focus Number of ETFs Number of constituents Short description
FTSE BRIC 50 Emerging Markets
China: 84.32%
(31/03/2021)
1 ETF 50
The FTSE BRIC 50 index tracks the 50 largest stocks of the BRIC countries (Brazil, Russia, India, China).
Index factsheet
FTSE Emerging Emerging Markets
China: 42.09%
(31/03/2021)
2 ETFs 1,851
(30.07.21)
The FTSE Emerging index tracks stocks from emerging markets worldwide.
Index factsheet
MSCI Emerging Markets Emerging Markets
China: 37.90%
(31/03/2021)
13 ETFs 1,406
(30.07.21)
The MSCI Emerging Markets index tracks stocks from emerging markets worldwide.
Index factsheet

Source: justETF.com; As of 31.07.21; Calculations in EUR based on the largest ETF of the respective index.

Indices on Asia

Asia indices with a large share of China

As further alternative you can invest in indices on Asia. In total, you can consider 5 Asian indices, which are tracked by 13 ETFs. The total expense ratio (TER) of ETFs on Asian indices is between 0.12% p.a. and 0.74% p.a..

Index Investment focus Number of ETFs Number of constituents Short description
MSCI AC Asia Pacific ex Japan Asia Pacific
China: 36.55%
(31/03/2021)
1 ETF 1,269
(30.07.21)
The MSCI AC Asia Pacific ex Japan index tracks equity markets of the emerging and developed countries of the Asia and Pacific region, excluding Japan.
Index factsheet
MSCI AC Asia ex Japan Asia Pacific
China: 42.62%
(31/03/2021)
3 ETFs 1,198
(30.07.21)
The MSCI AC Asia ex Japan index tracks equity markets of the emerging and developed countries of the Asia region, excluding Japan.
Index factsheet
MSCI AC Far East ex Japan Asia Pacific
China: 47.82%
(31/03/2021)
2 ETFs 1,094
(30.07.21)
The MSCI AC Far East ex Japan index tracks equity markets of the emerging and developed countries of the East Asian region, excluding Japan.
Index factsheet
MSCI Emerging Markets Asia Asia Pacific
China: 47.46%
(31/03/2021)
6 ETFs 1,142
(30.07.21)
The MSCI Emerging Markets Asia index tracks large and mid cap companies from Asian emerging markets.
Index factsheet
MSCI Emerging Markets Far East Asia Pacific
China: 54.00%
(31/03/2021)
1 ETF 1,038
(30.07.21)
The MSCI Emerging Markets Far East index tracks the largest companies in China (as accessible through the Hong Kong market), Indonesia, Korea, Malaysia, Philippines, Taiwan and Thailand.
Index factsheet

Source: justETF.com; As of 31.07.21; Calculations in EUR based on the largest ETF of the respective index.

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