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
Performance of Chinese stocks (MSCI China)
1 month: 2.43%
1 year: -11.17%
3 years: -35.60%
5 years: -15.08%
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 | 1,073 (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 | 755 (31/08/2023) | 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 | 836 (31/08/2023) | 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 | 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 | |
|---|---|---|---|---|---|---|
| Xtrackers CSI 300 Swap UCITS ETF 1CLU0779800910 | 2,006 | 0.50% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| iShares MSCI China A UCITS ETFIE00BQT3WG13 | 1,928 | 0.40% p.a. | Accumulating | Ireland | Optimized sampling | |
| Xtrackers MSCI China UCITS ETF 1CLU0514695690 | 838 | 0.65% p.a. | Accumulating | Luxembourg | Full replication | |
| HSBC MSCI China UCITS ETF USDIE00B44T3H88 | 568 | 0.28% 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 | 445 | 0.28% p.a. | Distributing | Luxembourg | Full replication | |
| Xtrackers Harvest CSI 300 UCITS ETF 1DLU0875160326 | 335 | 0.65% p.a. | Distributing | Luxembourg | Full replication | |
| Lyxor MSCI China UCITS ETF - AccLU1841731745 | 295 | 0.29% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Franklin FTSE China UCITS ETFIE00BHZRR147 | 209 | 0.19% p.a. | Accumulating | Ireland | Full replication | |
| Lyxor MSCI China A (DR) UCITS ETF - AccFR0011720911 | 184 | 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 | |
| Xtrackers FTSE China 50 UCITS ETF 1CLU0292109856 | 86 | 0.60% p.a. | Accumulating | Luxembourg | Full replication | |
| HSBC MSCI China A Inclusion UCITS ETFIE00BF4NQ904 | 49 | 0.30% p.a. | Distributing | Ireland | Full replication | |
| Invesco MSCI China All Shares Stock Connect UCITS ETF AccIE00BK80XL30 | 47 | 0.35% p.a. | Accumulating | Ireland | Full replication | |
| Invesco S&P China A 300 Swap UCITS ETF AccIE000K9Z3SF5 | 47 | 0.35% p.a. | Accumulating | Ireland | Unfunded swap | |
| HSBC MSCI China UCITS ETF USD (Acc)IE0007P4PBU1 | 46 | 0.28% p.a. | Accumulating | Ireland | Full replication | |
| ICBCCS S&P China 500 UCITS ETF USDLU1440654330 | 31 | 0.55% p.a. | Distributing | Luxembourg | Optimized sampling | |
| L&G E Fund MSCI China A UCITS ETFIE00BHBFDF83 | 14 | 0.88% p.a. | Accumulating | Ireland | Optimized sampling | |
| Xtrackers Harvest FTSE China A-H 50 UCITS ETF 1DLU1310477036 | 8 | 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 | |
| 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 % | |
|---|---|---|---|---|---|---|
| MSCI China A 50 Connect | -5.51% | -1.07% | -15.45% | -21.19% | -19.61% | |
| MSCI China A | -6.70% | -5.04% | -16.32% | -20.71% | -17.30% | |
| MSCI China A Inclusion | -6.76% | -4.96% | -16.26% | -20.69% | -16.67% | |
| S&P China 500 | -7.19% | -2.70% | -14.02% | -19.53% | -25.25% | |
| FTSE China A-H 50 | -6.06% | -0.98% | -12.86% | -17.95% | -13.23% | |
| MSCI China All Shares Stock Connect Select | -7.37% | -0.83% | -12.15% | -17.62% | - | |
| S&P China A 300 | -6.77% | -4.28% | -14.15% | -17.51% | - | |
| CSI 300 | -6.50% | -3.70% | -13.53% | -16.31% | -8.38% | |
| MSCI China | -7.79% | 2.04% | -9.46% | -15.83% | -34.54% | |
| FTSE China 30/18 Capped | -7.81% | 1.50% | -9.75% | -15.80% | -33.11% | |
| FTSE China 50 | -7.83% | 3.08% | -6.05% | -15.45% | -30.13% |
| Index | 2023 in % | 2022 in % | 2021 in % | 2020 in % | 2019 in % | |
|---|---|---|---|---|---|---|
| MSCI China A 50 Connect | -13.62% | -16.97% | 2.37% | 35.99% | - | |
| MSCI China A | -13.07% | -17.48% | 4.51% | 38.13% | 32.66% | |
| MSCI China A Inclusion | -12.88% | -17.33% | 4.13% | 37.72% | 31.50% | |
| S&P China 500 | -12.09% | -15.67% | -8.03% | 28.05% | 24.92% | |
| MSCI China All Shares Stock Connect Select | -11.14% | -14.61% | - | - | - | |
| FTSE China A-H 50 | -10.87% | -11.91% | -4.67% | 23.85% | 31.40% | |
| FTSE China 30/18 Capped | -10.08% | -13.61% | -19.24% | 26.22% | - | |
| S&P China A 300 | -10.05% | - | - | - | - | |
| MSCI China | -10.05% | -12.88% | -21.16% | 24.44% | 18.74% | |
| CSI 300 | -9.14% | -15.46% | 4.40% | 40.37% | 36.38% | |
| FTSE China 50 | -8.59% | -10.35% | -19.68% | 6.50% | 10.27% |
Source: justETF.com; As of 31/08/2023; Calculations in GBP based on the largest ETF of the respective index.
The best China ETFs
by 1 year return
| 1 | Lyxor MSCI China UCITS ETF - Acc | -15.21% |
| 2 | Xtrackers FTSE China 50 UCITS ETF 1C | -15.43% |
| 3 | iShares China Large Cap UCITS ETF | -15.45% |
The cheapest China ETFs
by total expense ratio (TER)
| 1 | Franklin FTSE China UCITS ETF | 0.19% p.a. |
| 2 | HSBC MSCI China UCITS ETF USD | 0.28% p.a. |
| 3 | HSBC MSCI China UCITS ETF USD (Acc) | 0.28% p.a. |
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 | 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) | 17 ETFs | 1,421 (31/08/2023) | 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 | 3,782 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 | 3,122 | 0.18% p.a. | Distributing | Ireland | Optimized sampling | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR (C)LU1437017350 | 2,231 | 0.20% p.a. | Accumulating | Luxembourg | Full replication | |
| Vanguard FTSE Emerging Markets UCITS ETF DistributingIE00B3VVMM84 | 1,790 | 0.22% p.a. | Distributing | Ireland | Optimized sampling | |
| HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 | 1,745 | 0.15% p.a. | Distributing | Ireland | Optimized sampling | |
| iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 | 1,679 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| Amundi MSCI Emerging Markets II UCITS ETF DistLU2573966905 | 1,274 | 0.14% p.a. | Distributing | Luxembourg | Unfunded swap | |
| UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 | 1,154 | 0.23% p.a. | Distributing | Luxembourg | Optimized sampling | |
| Amundi MSCI Emerging Markets UCITS ETF USDLU1681045453 | 802 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi MSCI Emerging Markets II UCITS ETF AccLU2573967036 | 649 | 0.14% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 | 565 | 0.49% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR EUR (D)LU1737652583 | 420 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
| Vanguard FTSE Emerging Markets UCITS ETF AccIE00BK5BR733 | 318 | 0.22% p.a. | Accumulating | Ireland | Optimized sampling | |
| Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 | 316 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 | 273 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| Xtrackers MSCI Emerging Markets UCITS ETF 1DIE000GWA2J58 | 140 | 0.18% p.a. | Distributing | Ireland | Full replication | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR - USD (D)LU2277591868 | 124 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
| Lyxor MSCI Emerging Markets UCITS ETF - Acc USDFR0010435297 | 96 | 0.55% p.a. | Accumulating | France | Unfunded swap | |
| iShares BIC 50 UCITS ETF USD (Dist)IE00B1W57M07 | 93 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| HSBC MSCI Emerging Markets UCITS ETF USD (Acc)IE000KCS7J59 | 93 | 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 | -7.55% | 5.47% | -5.29% | -14.29% | -37.96% | |
| FTSE Emerging | -4.25% | 1.63% | -1.45% | -7.78% | 2.72% | |
| MSCI Emerging Markets | -4.95% | 0.74% | -1.22% | -7.42% | 0.66% |
| Index | 2023 in % | 2022 in % | 2021 in % | 2020 in % | 2019 in % | |
|---|---|---|---|---|---|---|
| FTSE BIC 50 | -7.54% | -19.86% | -22.77% | 15.03% | 18.98% | |
| FTSE Emerging | -1.63% | -7.55% | 0.58% | 10.95% | 16.00% | |
| MSCI Emerging Markets | -1.03% | -10.57% | -1.50% | 14.15% | 13.94% |
Source: justETF.com; As of 31/08/2023; 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 | 1,292 (31/08/2023) | 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 | 1,227 (31/08/2023) | 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 | 1,112 (31/08/2023) | 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 | 1,173 (31/08/2023) | 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 | 1,780 | 0.20% p.a. | Accumulating | Ireland | Full replication | |
| SPDR MSCI EM Asia UCITS ETFIE00B466KX20 | 821 | 0.55% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares MSCI AC Far East ex-Japan UCITS ETFIE00B0M63730 | 784 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Amundi MSCI Emerging Markets Asia UCITS ETF USDLU1681044563 | 559 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor MSCI AC Asia Pacific Ex Japan UCITS ETF - AccLU1900068328 | 329 | 0.60% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| HSBC MSCI AC Far East ex Japan UCITS ETF USDIE00BBQ2W338 | 307 | 0.45% p.a. | Accumulating | Ireland | Optimized sampling | |
| Lyxor MSCI AC Asia Ex Japan UCITS ETF - AccLU1900068161 | 245 | 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 | 135 | 0.12% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| HSBC MSCI AC Far East ex Japan UCITS ETF USD (Dist)IE00022VXYM7 | 3 | 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 | -6.07% | -1.41% | -5.61% | -9.77% | -11.55% | |
| MSCI Emerging Markets Asia | -4.92% | -0.23% | -2.25% | -8.67% | -3.90% | |
| MSCI AC Asia ex Japan | -5.03% | -0.71% | -3.32% | -8.66% | -5.06% | |
| MSCI AC Asia Pacific ex Japan | -4.72% | -0.44% | -3.88% | -8.08% | -1.38% |
| Index | 2023 in % | 2022 in % | 2021 in % | 2020 in % | 2019 in % | |
|---|---|---|---|---|---|---|
| MSCI AC Far East ex Japan | -4.13% | -11.22% | -9.10% | 21.03% | 15.02% | |
| MSCI AC Asia Pacific ex Japan | -3.22% | -7.77% | -3.00% | 17.82% | 14.45% | |
| MSCI AC Asia ex Japan | -3.05% | -10.05% | -4.75% | 20.25% | 13.57% | |
| MSCI Emerging Markets Asia | -1.81% | -10.37% | -5.16% | 23.42% | 14.83% |
Source: justETF.com; As of 31/08/2023; Calculations in GBP based on the largest ETF of the respective index.