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 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. In Emerging Markets indices China is strongly weighted with up to 80%. The Asian indices weight China with about 56% or less.

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 (Hang Seng China Enterprises (HSCEI))

1 month: -3.73%
1 year: -6.43%
3 years: -1.48%
5 years: 33.68%

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 17 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 980
(30/06/20)
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

Hang Seng China Enterprises (HSCEI)

China 1 ETF 50
(31/08/20)
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 3 ETFs 711
(31/08/20)
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 713
(31/08/20)
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 1 ETF 473
(31/08/20)
The MSCI China A Inclusion index tracks China A-Shares also included in the MSCI Emerging Markets.
Index factsheet

MSCI China A International

China 1 ETF 510
(31/08/20)
The MSCI China A International 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 an international QFII/RQFII investor’s perspective
Index factsheet

MSCI China H

China 1 ETF 88
(31/08/20)
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
Xtrackers MSCI China UCITS ETF 1CLU0514695690 1,192 0.65% p.a. Accumulating Luxembourg Full replication
iShares MSCI China A UCITS ETFIE00BQT3WG13 1,062 0.40% p.a. Accumulating Ireland Optimized sampling
Xtrackers CSI 300 Swap UCITS ETF 1CLU0779800910 589 0.50% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers Harvest CSI 300 UCITS ETF 1DLU0875160326 476 0.65% p.a. Distributing Luxembourg Full replication
HSBC MSCI China UCITS ETF USDIE00B44T3H88 460 0.60% p.a. Distributing Ireland Full replication
iShares China Large Cap UCITS ETFIE00B02KXK85 404 0.74% p.a. Distributing Ireland Full replication
Lyxor China Enterprise (HSCEI) UCITS ETF - AccLU1900068914 253 0.65% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers FTSE China 50 UCITS ETF 1CLU0292109856 87 0.60% p.a. Accumulating Luxembourg Full replication
Lyxor Hwabao WP MSCI China A (DR) UCITS ETF - AccFR0011720911 61 0.35% p.a. Accumulating France Optimized sampling
Lyxor MSCI China UCITS ETF - AccLU1841731745 60 0.29% p.a. Accumulating Luxembourg Unfunded swap
WisdomTree S&P China 500 UCITS ETF USDLU1440654330 31 0.55% p.a. Distributing Luxembourg Optimized sampling
Franklin FTSE China UCITS ETFIE00BHZRR147 27 0.19% p.a. Accumulating Ireland Full replication
L&G E Fund MSCI China A UCITS ETFIE00BHBFDF83 22 0.88% p.a. Accumulating Ireland Optimized sampling
HSBC MSCI China A Inclusion UCITS ETFIE00BF4NQ904 19 0.30% p.a. Distributing Ireland Full replication
Amundi ETF MSCI China UCITS ETF USDLU1681044050 19 0.55% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers Harvest FTSE China A-H 50 UCITS ETF 1DLU1310477036 9 0.65% p.a. Distributing Luxembourg Full replication
UBS ETF (IE) MSCI China A SF UCITS ETF (USD) A-accIE00BKFB6K94 5 0.30% p.a. Accumulating Ireland Swap-based
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI China H -2.63% -2.71% -7.31% -10.96% -14.48%
Hang Seng China Enterprises (HSCEI) -1.99% -1.01% -3.41% -6.44% -7.35%
FTSE China 50 3.56% 5.16% 5.48% 4.53% 3.36%
FTSE China A-H 50 0.12% 10.44% 12.18% 8.43% 24.90%
S&P China 500 1.55% 15.00% 18.28% 21.76% 22.28%
MSCI China 3.27% 15.53% 18.64% 23.45% 22.28%
FTSE China 30/18 Capped 3.07% 15.14% 19.23% 24.75% -
CSI 300 2.59% 22.37% 23.77% 26.14% 36.91%
MSCI China A International 2.23% 21.53% 23.35% 26.38% 26.38%
MSCI China A 3.41% 23.18% 24.70% 27.88% 20.13%
MSCI China A Inclusion 3.69% 23.47% 25.24% 28.26% -
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
MSCI China H -13.16% 7.85% -8.53% 17.09% 22.06%
Hang Seng China Enterprises (HSCEI) -9.51% 9.75% -6.35% 14.99% 19.68%
FTSE China 50 -0.59% 10.27% -7.54% 22.52% 22.66%
FTSE China A-H 50 5.90% 31.40% -15.38% 27.92% -
MSCI China 15.93% 18.74% -15.37% 40.53% 20.86%
FTSE China 30/18 Capped 17.20% - - - -
S&P China 500 17.24% 24.92% -18.92% 29.96% -
CSI 300 23.01% 36.38% -20.18% 21.03% -0.81%
MSCI China A 24.40% 32.46% -25.98% 11.19% -3.11%
MSCI China A International 24.47% 31.50% -22.09% 16.43% -1.06%
MSCI China A Inclusion 25.57% 30.33% - - -

Source: justETF.com; As of 31/08/20; 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

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 15 ETFs. In particular, the FTSE BRIC 50 strongly weights China with 80.99% (as of 29/05/2020). 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: 80.99%
(29/05/2020)
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 Markets Emerging Markets
China: 43.13%
(29/05/2020)
2 ETFs 1,786
(29/05/20)
The FTSE Emerging Markets index tracks stocks from emerging markets worldwide.
Index factsheet
MSCI Emerging Markets Emerging Markets
China: 39.08%
(29/05/2020)
12 ETFs 1,383
(31/08/20)
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 2,387 0.20% p.a. Accumulating Ireland Optimized sampling
iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 1,888 0.18% p.a. Distributing Ireland Optimized sampling
Vanguard FTSE Emerging Markets UCITS ETF DistributingIE00B3VVMM84 1,609 0.22% p.a. Distributing Ireland Optimized sampling
Amundi ETF MSCI Emerging Markets UCITS ETF USDLU1681045453 1,537 0.20% p.a. Accumulating Luxembourg Unfunded swap
UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 1,313 0.22% p.a. Distributing Luxembourg Optimized sampling
Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 834 0.49% p.a. Accumulating Luxembourg Unfunded swap
iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 539 0.18% p.a. Accumulating Ireland Optimized sampling
Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 400 0.29% p.a. Accumulating Ireland Unfunded swap
ComStage MSCI Emerging Markets UCITS ETFLU0635178014 334 0.14% p.a. Distributing Luxembourg Unfunded swap
SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 326 0.42% p.a. Accumulating Ireland Optimized sampling
HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 265 0.15% p.a. Distributing Ireland Optimized sampling
Amundi Index MSCI Emerging Markets UCITS ETF DR EUR (D)LU1737652583 230 0.20% p.a. Distributing Luxembourg Full replication
iShares BRIC 50 UCITS ETFIE00B1W57M07 182 0.74% p.a. Distributing Ireland Full replication
Lyxor MSCI Emerging Markets UCITS ETF - Acc USDFR0010435297 96 0.55% p.a. Accumulating France Unfunded swap
Vanguard FTSE Emerging Markets UCITS ETF AccIE00BK5BR733 25 0.22% p.a. Accumulating Ireland Optimized sampling
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
FTSE Emerging Markets 0.85% 10.63% 6.19% 2.98% 5.34%
MSCI Emerging Markets -0.03% 9.80% 6.25% 3.41% 3.17%
FTSE BRIC 50 3.77% 11.07% 12.29% 14.23% 25.49%
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
MSCI Emerging Markets -2.18% 13.94% -10.13% - -
FTSE Emerging Markets -1.86% 16.00% -8.64% 20.10% 35.88%
FTSE BRIC 50 4.93% 18.98% -3.63% 23.98% 39.62%

Source: justETF.com; As of 31/08/20; Calculations in GBP based on the largest ETF of the respective index.

 

Asian indices with over 40% China share

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 Asian indices contain between 43% and 56% Chinese stocks. 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 ex Japan Asia Pacific
China: 43.93%
(29/05/2020)
2 ETFs 1,181
(31/08/20)
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: 48.33%
(29/05/2020)
2 ETFs 1,092
(31/08/20)
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: 49.92%
(29/05/2020)
5 ETFs 1,119
(31/08/20)
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: 55.68%
(29/05/2020)
1 ETF 1,030
(31/08/20)
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
ETF
ISIN
  Fund size
in m GBP
TER
in %
Use of profits Fund domicile Replication method
iShares MSCI AC Far East ex-Japan UCITS ETFIE00B0M63730 1,737 0.74% p.a. Distributing Ireland Optimized sampling
Amundi ETF MSCI Emerging Markets Asia UCITS ETF USDLU1681044563 976 0.20% p.a. Accumulating Luxembourg Unfunded swap
SPDR MSCI EM Asia UCITS ETFIE00B466KX20 776 0.55% p.a. Accumulating Ireland Optimized sampling
iShares MSCI EM Asia UCITS ETF (Acc)IE00B5L8K969 720 0.65% p.a. Accumulating Ireland Optimized sampling
Xtrackers MSCI EM Asia Swap UCITS ETF 1CLU0292107991 454 0.65% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers MSCI AC Asia ex Japan Swap UCITS ETF 1CLU0322252171 422 0.65% p.a. Accumulating Luxembourg Unfunded swap
HSBC MSCI AC Far East ex Japan UCITS ETF USDIE00BBQ2W338 391 0.45% p.a. Accumulating Ireland Optimized sampling
UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 130 0.23% p.a. Accumulating Ireland Swap-based
Lyxor MSCI EM Asia UCITS ETF - AccLU1781541849 89 0.12% p.a. Accumulating Luxembourg Unfunded swap
HSBC MSCI EM Far East UCITS ETF USDIE00B5LP3W10 12 0.60% p.a. Distributing Ireland Optimized sampling
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI AC Asia ex Japan 0.74% 11.12% 9.28% 8.77% 9.19%
MSCI AC Far East ex Japan 0.80% 11.15% 10.67% 10.81% 10.78%
MSCI Emerging Markets Asia 1.85% 13.53% 13.44% 14.12% 13.44%
MSCI Emerging Markets Far East 3.46% 15.44% 17.06% 18.44% 17.23%
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
MSCI AC Asia ex Japan 3.67% 13.39% -10.09% 28.95% 26.11%
MSCI AC Far East ex Japan 5.18% 15.02% -10.95% 28.59% 27.11%
MSCI Emerging Markets Asia 7.92% 15.06% -11.18% 29.44% 27.16%
MSCI Emerging Markets Far East 11.22% 15.27% -11.15% 30.13% 29.20%

Source: justETF.com; As of 31/08/20; Calculations in GBP based on the largest ETF of the respective index.