How to invest in China using ETFs

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 you'll find 11 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 best indices for China ETFs

Performance of Chinese stocks (MSCI China)

1 month: 12.66%
1 year: -18.57%
3 years: -10.10%
5 years: -12.45%

Indices in comparison

The best indices for ETFs on China

For an investment in the Chinese stock market, there are 11 indices available which are tracked by 21 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

FTSE China 30/18 Capped

China 1 ETF 1,074
(30/11/2022)
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

MSCI China

China 5 ETFs 723
(30/11/2022)
The MSCI China index tracks the largest and most liquid Chinese stocks (A shares, H shares, B shares, Red chips, P chips).
Index factsheet

MSCI China A

China 3 ETFs 753
(30/11/2022)
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 50 Connect

China 1 ETF 50
The MSCI China A 50 Connect index tracks the largest and most liquid Chinese A-Shares, denominated in Renminbi ("RMB") and listed on the Shenzhen and/or Shanghai stock exchanges.
Index factsheet

MSCI China A Inclusion

China 3 ETFs 501
(30/11/2022)
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 721
(30/11/2022)
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 79
(30/11/2022)
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
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
iShares MSCI China A UCITS ETFIE00BQT3WG13 1,694 0.40% p.a. Accumulating Ireland Optimized sampling
Xtrackers CSI 300 Swap UCITS ETF 1CLU0779800910 1,581 0.50% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers MSCI China UCITS ETF 1CLU0514695690 932 0.65% p.a. Accumulating Luxembourg Full replication
HSBC MSCI China UCITS ETF USDIE00B44T3H88 613 0.30% p.a. Distributing Ireland Full replication
iShares China Large Cap UCITS ETFIE00B02KXK85 458 0.74% p.a. Distributing Ireland Full replication
Xtrackers MSCI China UCITS ETF 1DLU2456436083 411 0.30% p.a. Distributing Luxembourg Full replication
Xtrackers Harvest CSI 300 UCITS ETF 1DLU0875160326 389 0.65% p.a. Distributing Luxembourg Full replication
Lyxor MSCI China UCITS ETF - AccLU1841731745 269 0.29% p.a. Accumulating Luxembourg Unfunded swap
Franklin FTSE China UCITS ETFIE00BHZRR147 199 0.19% p.a. Accumulating Ireland Full replication
Lyxor MSCI China A (DR) UCITS ETF - AccFR0011720911 173 0.35% p.a. Accumulating France Optimized sampling
UBS ETF (IE) MSCI China A SF UCITS ETF (USD) A-accIE00BKFB6K94 139 0.30% p.a. Accumulating Ireland Swap-based
Invesco MSCI China All Shares Stock Connect UCITS ETF AccIE00BK80XL30 101 0.35% p.a. Accumulating Ireland Full replication
Xtrackers FTSE China 50 UCITS ETF 1CLU0292109856 83 0.60% p.a. Accumulating Luxembourg Full replication
HSBC MSCI China A Inclusion UCITS ETFIE00BF4NQ904 50 0.30% p.a. Distributing Ireland Full replication
ICBCCS S&P China 500 UCITS ETF USDLU1440654330 40 0.55% p.a. Distributing Luxembourg Optimized sampling
HSBC MSCI China UCITS ETF USD (Acc)IE0007P4PBU1 29 0.30% p.a. Accumulating Ireland Full replication
L&G E Fund MSCI China A UCITS ETFIE00BHBFDF83 19 0.88% p.a. Accumulating Ireland Optimized sampling
Xtrackers Harvest FTSE China A-H 50 UCITS ETF 1DLU1310477036 7 0.65% p.a. Distributing Luxembourg Full replication
KraneShares MSCI China A 50 Connect UCITS ETFIE00BJLFK515 4 0.40% p.a. Accumulating Ireland Full replication
Amundi ETF MSCI China UCITS ETF USDLU1681044050 4 0.55% p.a. Accumulating Luxembourg Unfunded swap
HSBC MSCI China A UCITS ETF USD (Acc)IE000Z4OYPZ6 0 0.30% p.a. Accumulating Ireland Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
FTSE China 30/18 Capped 22.39% -9.65% -3.97% -20.61% -11.41%
MSCI China 23.13% -9.68% -3.87% -20.52% -13.95%
MSCI China All Shares Stock Connect Select 16.26% -9.61% -3.25% -19.72% -
MSCI China A 50 Connect 7.52% -10.76% -4.82% -19.55% 17.11%
S&P China 500 12.19% -10.14% -4.01% -19.35% 1.52%
FTSE China 50 23.96% -11.80% -7.79% -18.72% -23.07%
MSCI China A 7.22% -9.52% -2.80% -18.45% 23.44%
MSCI China A Inclusion 7.14% -9.51% -2.01% -18.41% 23.42%
CSI 300 6.22% -10.06% -3.41% -16.94% 26.30%
FTSE China A-H 50 14.02% -8.54% -3.17% -13.23% 6.97%
MSCI China H 15.06% -4.70% -2.77% 0.32% -2.14%
Index   2022
in %
2021
in %
2020
in %
2019
in %
2018
in %
MSCI China A 50 Connect -20.20% 2.37% 35.99% - -
MSCI China A -18.78% 4.09% 37.56% 32.46% -25.98%
MSCI China A Inclusion -18.75% 4.35% 37.72% 31.50% -22.09%
CSI 300 -18.34% 4.40% 40.37% 36.38% -20.18%
S&P China 500 -17.99% -8.03% 28.05% 24.92% -18.92%
MSCI China All Shares Stock Connect Select -17.67% - - - -
FTSE China 30/18 Capped -17.63% -19.24% 26.22% - -
MSCI China -17.01% -21.16% 24.44% 18.74% -15.37%
FTSE China 50 -15.38% -19.68% 6.50% 10.27% -7.54%
FTSE China A-H 50 -14.07% -4.67% 23.85% 31.40% -15.38%
MSCI China H -0.22% -2.33% -4.82% 7.85% -8.53%

Source: justETF.com; As of 30/11/2022; Calculations in GBP based on the largest ETF of the respective index.

 

Speciality

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 listed stocks

Besides China ETFs you can invest in ETFs on the Hong Kong stock market. In order to invest in Hong Kong there are 0 indices, which are tracked by 0 ETFs. The total expense ratio (TER) of ETFs on Hong Kong is at -.

 
 
  • For the selected origin country, there are no ETFs with this investment focus available.
    You are able to select your country of origin on the top of the screen.
 

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 20 ETFs. The total expense ratio (TER) of ETFs on emerging markets is between 0.14% p.a. and 0.74% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
FTSE BIC 50 Emerging Markets
China: 84.49%
(30/11/2022)
1 ETF 50
The FTSE BIC 50 index tracks the 50 largest stocks of the BIC countries (Brazil, India, China).
Index factsheet
FTSE Emerging Emerging Markets
China: 33.14%
(30/11/2022)
2 ETFs 1,993
(30/11/2022)
The FTSE Emerging index tracks stocks from emerging markets worldwide.
Index factsheet
MSCI Emerging Markets Emerging Markets
China: 30.40%
(30/11/2022)
17 ETFs 1,386
(30/11/2022)
The MSCI Emerging Markets index tracks stocks from emerging markets worldwide.
Index factsheet
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
Xtrackers MSCI Emerging Markets UCITS ETF 1CIE00BTJRMP35 3,674 0.18% p.a. Accumulating Ireland Optimized sampling
iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 2,822 0.18% p.a. Distributing Ireland Optimized sampling
Amundi ETF MSCI Emerging Markets UCITS ETF DRLU1437017350 2,079 0.20% p.a. Accumulating Luxembourg Full replication
Vanguard FTSE Emerging Markets UCITS ETF DistributingIE00B3VVMM84 1,640 0.22% p.a. Distributing Ireland Optimized sampling
HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 1,284 0.15% p.a. Distributing Ireland Optimized sampling
iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 1,130 0.18% p.a. Accumulating Ireland Optimized sampling
UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 999 0.23% p.a. Distributing Luxembourg Optimized sampling
Lyxor MSCI Emerging Markets (LUX) UCITS ETFLU0635178014 791 0.14% p.a. Distributing Luxembourg Unfunded swap
Amundi ETF MSCI Emerging Markets UCITS ETF USDLU1681045453 762 0.20% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 583 0.49% p.a. Accumulating Luxembourg Unfunded swap
Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 336 0.19% p.a. Accumulating Ireland Unfunded swap
Amundi Index MSCI Emerging Markets UCITS ETF DR EUR (D)LU1737652583 267 0.20% p.a. Distributing Luxembourg Full replication
SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 264 0.42% p.a. Accumulating Ireland Optimized sampling
Vanguard FTSE Emerging Markets UCITS ETF AccIE00BK5BR733 209 0.22% p.a. Accumulating Ireland Optimized sampling
Xtrackers MSCI Emerging Markets UCITS ETF 1DIE000GWA2J58 126 0.18% p.a. Distributing Ireland Full replication
Amundi Index MSCI Emerging Markets UCITS ETF DR - USD (D)LU2277591868 118 0.20% p.a. Distributing Luxembourg Full replication
Lyxor MSCI Emerging Markets UCITS ETF - Acc USDFR0010435297 110 0.55% p.a. Accumulating France Unfunded swap
Lyxor MSCI Emerging Markets (LUX) UCITS ETF - AccLU2200146228 101 0.14% p.a. Accumulating Luxembourg Unfunded swap
iShares BRIC 50 UCITS ETF USD (Dist)IE00B1W57M07 98 0.74% p.a. Distributing Ireland Full replication
HSBC MSCI Emerging Markets UCITS ETF USD (Acc)IE000KCS7J59 57 0.15% p.a. Accumulating Ireland Optimized sampling
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
FTSE BIC 50 23.05% -10.80% -6.03% -26.77% -27.75%
MSCI Emerging Markets 10.89% -3.97% -2.05% -8.31% 7.23%
FTSE Emerging 10.00% -4.63% -1.25% -6.00% 8.81%
Index   2022
in %
2021
in %
2020
in %
2019
in %
2018
in %
FTSE BIC 50 -23.62% -22.77% 15.03% 18.98% -3.63%
MSCI Emerging Markets -9.02% -1.50% 14.15% 13.94% -10.13%
FTSE Emerging -6.57% 0.60% 10.90% 16.00% -8.64%

Source: justETF.com; As of 30/11/2022; Calculations in GBP based on the largest ETF of the respective index.

 

Asia indices with a large share of China

As further alternative you can invest in indices on Asia. In total, you can consider 4 Asian indices, which are tracked by 10 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: 28.63%
(30/11/2022)
1 ETF 1,269
(30/11/2022)
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: 34.64%
(30/11/2022)
2 ETFs 1,205
(30/11/2022)
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: 41.69%
(30/11/2022)
3 ETFs 1,098
(30/11/2022)
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: 38.94%
(30/11/2022)
4 ETFs 1,151
(30/11/2022)
The MSCI Emerging Markets Asia index tracks large and mid cap companies from Asian emerging markets.
Index factsheet
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
iShares MSCI EM Asia UCITS ETF (Acc)IE00B5L8K969 1,342 0.20% p.a. Accumulating Ireland Full replication
iShares MSCI AC Far East ex-Japan UCITS ETFIE00B0M63730 913 0.74% p.a. Distributing Ireland Full replication
SPDR MSCI EM Asia UCITS ETFIE00B466KX20 807 0.55% p.a. Accumulating Ireland Optimized sampling
Amundi ETF MSCI Emerging Markets Asia UCITS ETF USDLU1681044563 630 0.20% p.a. Accumulating Luxembourg Unfunded swap
Lyxor MSCI AC Asia Pacific Ex Japan UCITS ETF - AccLU1900068328 375 0.60% p.a. Accumulating Luxembourg Unfunded swap
HSBC MSCI AC Far East ex Japan UCITS ETF USDIE00BBQ2W338 328 0.45% p.a. Accumulating Ireland Optimized sampling
Lyxor MSCI AC Asia Ex Japan UCITS ETF - AccLU1900068161 235 0.50% p.a. Accumulating Luxembourg Unfunded swap
UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 163 0.23% p.a. Accumulating Ireland Swap-based
Lyxor MSCI EM Asia UCITS ETF - AccLU1781541849 128 0.12% p.a. Accumulating Luxembourg Unfunded swap
HSBC MSCI AC Far East ex Japan UCITS ETF USD (Dist)IE00022VXYM7 2 0.45% p.a. Distributing Ireland Optimized sampling
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI AC Far East ex Japan 17.43% -5.00% -4.62% -13.14% 1.54%
MSCI Emerging Markets Asia 14.44% -4.56% -1.68% -10.19% 10.74%
MSCI AC Asia ex Japan 15.41% -4.20% -1.22% -9.84% 9.08%
MSCI AC Asia Pacific ex Japan 14.37% -3.27% -0.89% -6.78% 11.05%
Index   2022
in %
2021
in %
2020
in %
2019
in %
2018
in %
MSCI AC Far East ex Japan -11.65% -9.26% 21.04% 15.02% -10.95%
MSCI Emerging Markets Asia -9.30% -5.32% 23.41% 14.84% -11.28%
MSCI AC Asia ex Japan -8.88% -4.75% 20.25% 13.57% -10.04%
MSCI AC Asia Pacific ex Japan -6.27% -3.00% 17.82% 14.45% -9.67%

Source: justETF.com; As of 30/11/2022; Calculations in GBP based on the largest ETF of the respective index.