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 10 indices which are tracked by ETFs. The speciality of China are the three categories of Chinese stocks: A-stocks, B-stocks and H-stocks.

Alternatively, you may invest in indices on Emerging Markets or Asia.

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: -5.92%
1 year: -3.14%
3 years: -36.09%
5 years: -17.81%

Indices in comparison

The best indices for ETFs on China

For an investment in the Chinese stock market, there are 10 indices available which are tracked by 20 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 1,073
(31/08/2023)
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 702
(31/05/2024)
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 690
(31/05/2024)
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 3 ETFs 541
(31/08/2023)
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 755
(31/08/2023)
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

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

S&P China A 300

China 1 ETF 300
The S&P China A 300 index tracks the 300 largest and most liquid Chinese A-Shares, denominated in Renminbi ("RMB") and listed on the Shenzhen and/or Shanghai stock exchanges.
Index factsheet
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
iShares MSCI China A UCITS ETFIE00BQT3WG13 2,081 0.40% p.a. Accumulating Ireland Full replication
Xtrackers CSI 300 Swap UCITS ETF 1CLU0779800910 830 0.50% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers MSCI China UCITS ETF 1CLU0514695690 710 0.65% p.a. Accumulating Luxembourg Full replication
iShares China Large Cap UCITS ETFIE00B02KXK85 502 0.74% p.a. Distributing Ireland Full replication
HSBC MSCI China UCITS ETF USDIE00B44T3H88 481 0.28% p.a. Distributing Ireland Full replication
Franklin FTSE China UCITS ETFIE00BHZRR147 439 0.19% p.a. Accumulating Ireland Full replication
Xtrackers MSCI China UCITS ETF 1DLU2456436083 291 0.28% p.a. Distributing Luxembourg Full replication
Xtrackers Harvest CSI 300 UCITS ETF 1DLU0875160326 261 0.65% p.a. Distributing Luxembourg Full replication
Amundi MSCI China UCITS ETF AccLU1841731745 248 0.29% p.a. Accumulating Luxembourg Unfunded swap
Amundi MSCI China A UCITS ETF AccFR0011720911 153 0.35% p.a. Accumulating France Full replication
Xtrackers FTSE China 50 UCITS ETF 1CLU0292109856 132 0.60% p.a. Accumulating Luxembourg Full replication
HSBC MSCI China UCITS ETF USD (Acc)IE0007P4PBU1 118 0.28% p.a. Accumulating Ireland Full replication
UBS ETF (IE) MSCI China A SF UCITS ETF (USD) A-accIE00BKFB6K94 72 0.24% p.a. Accumulating Ireland Swap-based
HSBC MSCI China A Inclusion UCITS ETFIE00BF4NQ904 60 0.30% p.a. Distributing Ireland Full replication
Invesco MSCI China All Shares Stock Connect UCITS ETF AccIE00BK80XL30 42 0.35% p.a. Accumulating Ireland Full replication
KraneShares ICBCCS China S&P 500 UCITS ETFIE0001QF56M0 27 0.55% p.a. Accumulating Ireland Full replication
L&G E Fund MSCI China A UCITS ETFIE00BHBFDF83 11 0.88% p.a. Accumulating Ireland Optimized sampling
Invesco S&P China A 300 Swap UCITS ETF AccIE000K9Z3SF5 9 0.35% p.a. Accumulating Ireland Unfunded swap
Xtrackers Harvest FTSE China A-H 50 UCITS ETF 1DLU1310477036 8 0.65% p.a. Distributing Luxembourg Full replication
HSBC MSCI China A UCITS ETF USD (Acc)IE000Z4OYPZ6 1 0.30% p.a. Accumulating Ireland Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI China A Inclusion -2.37% 0.92% 0.00% -9.09% -29.64%
MSCI China A -2.27% 0.76% 0.02% -8.95% -29.35%
CSI 300 -1.68% 1.15% 1.25% -6.96% -24.30%
S&P China A 300 -1.97% 1.75% 1.75% -6.68% -
MSCI China All Shares Stock Connect Select -0.34% 5.89% 2.11% -3.11% -34.64%
FTSE China A-H 50 -0.81% 5.86% 4.86% -1.44% -28.13%
FTSE China 30/18 Capped 0.81% 9.11% 3.58% 0.23% -36.73%
MSCI China 0.93% 9.47% 3.43% 0.74% -37.20%
FTSE China 50 -0.05% 10.44% 6.58% 1.45% -32.15%
S&P China 500 -0.59% 4.98% 1.93% - -
Index   2024
in %
2023
in %
2022
in %
2021
in %
2020
in %
MSCI China A 2.15% -18.42% -17.48% 4.51% 38.13%
MSCI China A Inclusion 2.17% -18.43% -17.33% 4.13% 37.72%
CSI 300 2.92% -14.71% -15.46% 4.40% 40.37%
S&P China A 300 3.56% -15.33% - - -
S&P China 500 4.20% - - - -
MSCI China All Shares Stock Connect Select 4.80% -17.16% -14.61% - -
FTSE China A-H 50 6.55% -16.74% -11.91% -4.67% 23.85%
MSCI China 6.57% -16.67% -12.88% -21.16% 24.44%
FTSE China 30/18 Capped 6.57% -16.68% -13.61% -19.24% 26.22%
FTSE China 50 10.07% -18.27% -10.35% -19.68% 6.50%

Source: justETF.com; As of 31/05/2024; Calculations in GBP based on the largest ETF of the respective index.

 

The cheapest China ETFs
by total expense ratio (TER)

Show all

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

Emerging markets indices with a large share of China

As alternative you can consider ETFs on emerging markets. Currently, you can invest in 3 emerging markets indices tracked by 21 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 2,021
(31/08/2023)
The FTSE Emerging index tracks stocks from emerging markets worldwide.
Index factsheet
MSCI Emerging Markets Emerging Markets
China: 30.40%
(30/11/2022)
18 ETFs 1,373
(31/05/2024)
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 4,347 0.18% p.a. Accumulating Ireland Optimized sampling
iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 3,687 0.18% p.a. Distributing Ireland Optimized sampling
Amundi Index MSCI Emerging Markets UCITS ETF DR (C)LU1437017350 2,692 0.18% p.a. Accumulating Luxembourg Full replication
iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 2,473 0.18% p.a. Accumulating Ireland Optimized sampling
HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 1,900 0.15% p.a. Distributing Ireland Optimized sampling
Vanguard FTSE Emerging Markets UCITS ETF DistributingIE00B3VVMM84 1,819 0.22% p.a. Distributing Ireland Optimized sampling
Amundi MSCI Emerging Markets II UCITS ETF DistLU2573966905 1,394 0.14% p.a. Distributing Luxembourg Unfunded swap
UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 1,262 0.18% p.a. Distributing Luxembourg Optimized sampling
Amundi MSCI Emerging Markets II UCITS ETF AccLU2573967036 1,212 0.14% p.a. Accumulating Luxembourg Unfunded swap
Amundi MSCI Emerging Markets UCITS ETF USDLU1681045453 665 0.20% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 538 0.49% p.a. Accumulating Luxembourg Unfunded swap
SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 473 0.18% p.a. Accumulating Ireland Full replication
Vanguard FTSE Emerging Markets UCITS ETF AccIE00BK5BR733 439 0.22% p.a. Accumulating Ireland Optimized sampling
Amundi Index MSCI Emerging Markets UCITS ETF DR EUR (D)LU1737652583 434 0.18% p.a. Distributing Luxembourg Full replication
Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 283 0.19% p.a. Accumulating Ireland Unfunded swap
HSBC MSCI Emerging Markets UCITS ETF USD (Acc)IE000KCS7J59 183 0.15% p.a. Accumulating Ireland Optimized sampling
Xtrackers MSCI Emerging Markets UCITS ETF 1DIE000GWA2J58 165 0.18% p.a. Distributing Ireland Full replication
Amundi Index MSCI Emerging Markets UCITS ETF DR - USD (D)LU2277591868 135 0.18% p.a. Distributing Luxembourg Full replication
iShares BIC 50 UCITS ETF USD (Dist)IE00B1W57M07 88 0.74% p.a. Distributing Ireland Full replication
Amundi MSCI Emerging Markets III UCITS ETF USD AccFR0010435297 79 0.55% p.a. Accumulating France Unfunded swap
Xtrackers MSCI Emerging Markets Swap UCITS ETF 1DLU2675291913 55 0.18% p.a. Distributing Luxembourg Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
FTSE BIC 50 0.18% 8.50% 2.58% 4.41% -40.55%
MSCI Emerging Markets -0.76% 3.01% 6.99% 9.15% -8.17%
FTSE Emerging -0.30% 3.76% 7.74% 10.49% -4.19%
Index   2024
in %
2023
in %
2022
in %
2021
in %
2020
in %
MSCI Emerging Markets 3.50% 3.61% -10.57% -1.50% 14.15%
FTSE BIC 50 4.50% -12.41% -19.86% -22.77% 15.03%
FTSE Emerging 4.83% 2.02% -7.55% 0.58% 10.95%

Source: justETF.com; As of 31/05/2024; 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 1,244
(31/05/2024)
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 1,180
(31/05/2024)
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 1,044
(31/05/2024)
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 1,129
(31/05/2024)
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 1,998 0.20% p.a. Accumulating Ireland Full replication
SPDR MSCI EM Asia UCITS ETFIE00B466KX20 694 0.55% p.a. Accumulating Ireland Full replication
iShares MSCI AC Far East ex-Japan UCITS ETFIE00B0M63730 678 0.74% p.a. Distributing Ireland Full replication
Amundi MSCI Emerging Markets Asia UCITS ETF USDLU1681044563 455 0.20% p.a. Accumulating Luxembourg Unfunded swap
Amundi MSCI AC Asia Pacific Ex Japan UCITS ETF AccLU1900068328 303 0.60% p.a. Accumulating Luxembourg Unfunded swap
UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 225 0.23% p.a. Accumulating Ireland Swap-based
Amundi MSCI AC Asia Ex Japan UCITS ETF AccLU1900068161 196 0.50% p.a. Accumulating Luxembourg Unfunded swap
Amundi MSCI Emerging Asia II UCITS ETF AccLU1781541849 169 0.12% p.a. Accumulating Luxembourg Unfunded swap
HSBC MSCI AC Far East ex Japan UCITS ETF USDIE00BBQ2W338 115 0.45% p.a. Accumulating Ireland Optimized sampling
HSBC MSCI AC Far East ex Japan UCITS ETF USD (Dist)IE00022VXYM7 9 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 0.33% 5.06% 6.06% 3.49% -19.67%
MSCI AC Asia ex Japan 0.17% 4.81% 8.43% 8.04% -11.09%
MSCI AC Asia Pacific ex Japan 0.19% 4.16% 8.22% 8.05% -8.15%
MSCI Emerging Markets Asia 0.03% 4.80% 8.66% 9.31% -9.93%
Index   2024
in %
2023
in %
2022
in %
2021
in %
2020
in %
MSCI AC Far East ex Japan 4.01% -3.25% -11.22% -9.10% 21.03%
MSCI AC Asia Pacific ex Japan 4.10% 0.89% -7.77% -3.00% 17.82%
MSCI AC Asia ex Japan 5.25% 0.06% -10.16% -3.78% 20.35%
MSCI Emerging Markets Asia 5.73% 1.75% -10.37% -5.16% 23.42%

Source: justETF.com; As of 31/05/2024; Calculations in GBP based on the largest ETF of the respective index.