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 12 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 87%. The Asian indices weight China with about 59% or less.
Performance of Chinese stocks (Hang Seng China Enterprises (HSCEI))
Indices in comparison
The best indices for ETFs on China
For an investment in the Chinese stock market, there are 12 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 | 1,020 (30/10/2020) |
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 | 2 ETFs | 52 (26/02/2021) |
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 | 709 (31/03/2021) |
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 | 757 (31/03/2021) |
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 | 470 (31/03/2021) |
The MSCI China A Inclusion index tracks China A-Shares also included in the MSCI Emerging Markets.
Index factsheet |
MSCI China H |
China | 1 ETF | 79 (31/03/2021) |
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 EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Xtrackers MSCI China UCITS ETF 1CLU0514695690 | 1,774 | 0.65% p.a. | Accumulating | Luxembourg | Full replication | |
| iShares MSCI China A UCITS ETFIE00BQT3WG13 | 1,707 | 0.40% p.a. | Accumulating | Ireland | Optimized sampling | |
| Xtrackers CSI 300 Swap UCITS ETF 1CLU0779800910 | 1,344 | 0.50% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| HSBC MSCI China UCITS ETF USDIE00B44T3H88 | 617 | 0.30% p.a. | Distributing | Ireland | Full replication | |
| iShares China Large Cap UCITS ETFIE00B02KXK85 | 592 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Xtrackers Harvest CSI 300 UCITS ETF 1DLU0875160326 | 585 | 0.65% p.a. | Distributing | Luxembourg | Full replication | |
| Lyxor China Enterprise (HSCEI) UCITS ETF - AccLU1900068914 | 279 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| iShares MSCI China UCITS ETF USD (Acc)IE00BJ5JPG56 | 271 | 0.40% p.a. | Accumulating | Ireland | Full replication | |
| Lyxor Hwabao WP MSCI China A (DR) UCITS ETF - AccFR0011720911 | 190 | 0.35% p.a. | Accumulating | France | Optimized sampling | |
| Deka MSCI China UCITS ETFDE000ETFL326 | 143 | 0.65% p.a. | Distributing | Germany | Full replication | |
| Lyxor MSCI China UCITS ETF - AccLU1841731745 | 142 | 0.29% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Franklin FTSE China UCITS ETFIE00BHZRR147 | 129 | 0.19% p.a. | Accumulating | Ireland | Full replication | |
| Xtrackers FTSE China 50 UCITS ETF 1CLU0292109856 | 117 | 0.60% p.a. | Accumulating | Luxembourg | Full replication | |
| iShares Dow Jones China Offshore 50 UCITS ETF (DE)DE000A0F5UE8 | 89 | 0.61% p.a. | Distributing | Germany | Full replication | |
| Amundi MSCI China UCITS ETF EUR (C)LU1681043912 | 62 | 0.55% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| WisdomTree S&P China 500 UCITS ETF USDLU1440654330 | 60 | 0.55% p.a. | Distributing | Luxembourg | Optimized sampling | |
| HSBC MSCI China A Inclusion UCITS ETFIE00BF4NQ904 | 44 | 0.30% p.a. | Distributing | Ireland | Full replication | |
| L&G E Fund MSCI China A UCITS ETFIE00BHBFDF83 | 34 | 0.88% p.a. | Accumulating | Ireland | Optimized sampling | |
| Lyxor FTSE China A50 UCITS ETFLU0947415054 | 33 | 0.40% p.a. | Distributing | Luxembourg | Unfunded swap | |
| Xtrackers Harvest FTSE China A-H 50 UCITS ETF 1DLU1310477036 | 13 | 0.65% p.a. | Distributing | Luxembourg | Full replication | |
| Lyxor HSCEI UCITS ETFLU0488316992 | 10 | 0.55% p.a. | Distributing | Luxembourg | Unfunded swap | |
| UBS ETF (IE) MSCI China A SF UCITS ETF (USD) A-accIE00BKFB6K94 | 9 | 0.30% p.a. | Accumulating | Ireland | Swap-based |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| Hang Seng China Enterprises (HSCEI) | 0.43% | 5.80% | 15.56% | 9.09% | 3.70% | |
| MSCI China H | 3.15% | 8.79% | 23.69% | 12.51% | 1.62% | |
| FTSE China 50 | -2.09% | 2.77% | 12.36% | 16.96% | 12.31% | |
| Dow Jones China Offshore 50 | -5.13% | 3.03% | 13.51% | 32.85% | 30.30% | |
| MSCI China | -3.19% | 4.04% | 10.21% | 33.29% | 30.84% | |
| FTSE China 30/18 Capped | -3.22% | 4.17% | 10.82% | 34.79% | - | |
| S&P China 500 | -3.25% | 3.26% | 12.29% | 36.25% | 34.42% | |
| FTSE China A-H 50 | -1.90% | 4.33% | 22.43% | 37.43% | 44.38% | |
| MSCI China A | -3.13% | 0.40% | 13.00% | 40.36% | 37.64% | |
| MSCI China A Inclusion | -3.02% | 0.20% | 13.00% | 40.55% | 44.10% | |
| FTSE China A50 | -3.60% | 3.98% | 19.41% | 41.76% | 41.87% | |
| CSI 300 | -3.26% | 1.72% | 17.00% | 47.84% | 56.55% |
| Index | 2021 in % |
2020 in % |
2019 in % |
2018 in % |
2017 in % |
|
|---|---|---|---|---|---|---|
| MSCI China A | 0.40% | 30.04% | 39.77% | -27.11% | 7.30% | |
| MSCI China A Inclusion | 1.99% | 30.61% | 38.03% | -22.62% | 12.23% | |
| Dow Jones China Offshore 50 | 3.03% | 15.85% | 26.72% | -14.49% | 28.13% | |
| CSI 300 | 3.14% | 32.87% | 44.61% | -21.41% | 16.61% | |
| S&P China 500 | 3.40% | 21.25% | 31.25% | -19.52% | 25.45% | |
| FTSE China 50 | 3.67% | 0.79% | 15.94% | -8.30% | 18.24% | |
| FTSE China A50 | 3.98% | 21.54% | 39.87% | -22.04% | 23.58% | |
| MSCI China | 4.99% | 17.77% | 25.97% | -16.66% | 35.39% | |
| FTSE China 30/18 Capped | 5.39% | 19.47% | - | - | - | |
| FTSE China A-H 50 | 5.46% | 17.22% | 39.42% | -16.66% | 23.16% | |
| Hang Seng China Enterprises (HSCEI) | 6.83% | -9.18% | 15.38% | -7.11% | 10.97% | |
| MSCI China H | 10.01% | -9.73% | 13.30% | -9.02% | 12.92% |
Source: justETF.com; As of 31/03/2021; Calculations in EUR based on the largest ETF of the respective index.
The best China ETFs
by 1 year return
| 1 | Xtrackers CSI 300 Swap UCITS ETF 1C | 47.84% |
| 2 | UBS ETF (IE) MSCI China A SF UCITS ETF (USD) A-acc | 47.79% |
| 3 | Lyxor FTSE China A50 UCITS ETF | 41.76% |
The cheapest China ETFs
by total expense ratio (TER)
| 1 | Franklin FTSE China UCITS ETF | 0.19% p.a. |
| 2 | Lyxor MSCI China UCITS ETF - Acc | 0.29% p.a. |
| 3 | HSBC MSCI China A Inclusion UCITS ETF | 0.30% 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.
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 2 ETFs. The total expense ratio (TER) of ETFs on Hong Kong is between 0.55% p.a. and 0.65% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| Hang Seng (HSI) | Hong Kong | 2 ETFs | 52 (26/02/2021) |
The Hang Seng index (HSI) tracks the largest and most liquid blue chip stocks listed on the Hongkong stock exchange.
Index factsheet |
| ETF ISIN |
Fund size in m EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Lyxor Hong Kong (HSI) UCITS ETF - DistLU1900067940 | 126 | 0.65% p.a. | Distributing | Luxembourg | Unfunded swap | |
| Lyxor HSI UCITS ETFLU0488316729 | 10 | 0.55% p.a. | Distributing | Luxembourg | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| Hang Seng (HSI) | 1.16% | 8.31% | 20.31% | 14.02% | 6.33% |
| Index | 2021 in % |
2020 in % |
2019 in % |
2018 in % |
2017 in % |
|
|---|---|---|---|---|---|---|
| Hang Seng (HSI) | 8.84% | -9.20% | 14.27% | -7.42% | 21.53% |
Source: justETF.com; As of 31/03/2021; Calculations in EUR based on the largest ETF of the respective index.
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. In particular, the FTSE BRIC 50 strongly weights China with 86.94% (as of 30/10/2020). 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: 86.94% (30/10/2020) |
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 | Emerging Markets
China: 47.64% (30/10/2020) |
2 ETFs | 1,820 (26/02/2021) |
The FTSE Emerging index tracks stocks from emerging markets worldwide.
Index factsheet |
| MSCI Emerging Markets | Emerging Markets
China: 43.24% (30/10/2020) |
13 ETFs | 1,392 (31/03/2021) |
The MSCI Emerging Markets index tracks stocks from emerging markets worldwide.
Index factsheet |
| ETF ISIN |
Fund size in m EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Xtrackers MSCI Emerging Markets UCITS ETF 1CIE00BTJRMP35 | 4,563 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 | 3,488 | 0.18% p.a. | Distributing | Ireland | Optimized sampling | |
| Amundi MSCI Emerging Markets UCITS ETF EUR (C)LU1681045370 | 2,841 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Vanguard FTSE Emerging Markets UCITS ETF DistributingIE00B3VVMM84 | 2,199 | 0.22% p.a. | Distributing | Ireland | Optimized sampling | |
| UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 | 1,907 | 0.23% p.a. | Distributing | Luxembourg | Optimized sampling | |
| Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 | 1,083 | 0.49% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor MSCI Emerging Markets UCITS ETF - Acc EURFR0010429068 | 1,061 | 0.55% p.a. | Accumulating | France | Unfunded swap | |
| iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 | 961 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 | 870 | 0.15% p.a. | Distributing | Ireland | Optimized sampling | |
| Lyxor MSCI Emerging Markets (LUX) UCITS ETFLU0635178014 | 657 | 0.14% p.a. | Distributing | Luxembourg | Unfunded swap | |
| Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 | 499 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 | 457 | 0.42% p.a. | Accumulating | Ireland | Optimized sampling | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR EUR (D)LU1737652583 | 403 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
| iShares BRIC 50 UCITS ETFIE00B1W57M07 | 219 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Vanguard FTSE Emerging Markets UCITS ETF AccIE00BK5BR733 | 78 | 0.22% p.a. | Accumulating | Ireland | Optimized sampling | |
| Deka MSCI Emerging Markets UCITS ETFDE000ETFL342 | 57 | 0.65% p.a. | Accumulating | Germany | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| FTSE BRIC 50 | -2.94% | 2.57% | 13.02% | 33.09% | 30.03% | |
| FTSE Emerging | 1.77% | 7.45% | 20.27% | 45.16% | 26.49% | |
| MSCI Emerging Markets | 1.81% | 7.00% | 22.14% | 47.71% | 26.13% |
| Index | 2021 in % |
2020 in % |
2019 in % |
2018 in % |
2017 in % |
|
|---|---|---|---|---|---|---|
| FTSE BRIC 50 | 3.35% | 8.88% | 25.09% | -4.43% | 19.63% | |
| MSCI Emerging Markets | 7.00% | 8.01% | 20.90% | -11.48% | - | |
| FTSE Emerging | 7.60% | 4.95% | 21.96% | -9.38% | 15.91% |
Source: justETF.com; As of 31/03/2021; Calculations in EUR based on the largest ETF of the respective index.
Asian indices with over 45% China share
As further alternative you can invest in indices on Asia. In total, you can consider 4 Asian indices, which are tracked by 11 ETFs. The Asian indices contain between 48% and 59% 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: 47.81% (30/10/2020) |
3 ETFs | 1,182 (31/03/2021) |
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: 52.56% (30/10/2020) |
2 ETFs | 1,083 (31/03/2021) |
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: 53.10% (30/10/2020) |
5 ETFs | 1,125 (31/03/2021) |
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: 59.02% (30/10/2020) |
1 ETF | 1,026 (31/03/2021) |
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 EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI AC Far East ex-Japan UCITS ETFIE00B0M63730 | 2,136 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Amundi MSCI Emerging Markets Asia UCITS ETF EUR (C)LU1681044480 | 1,808 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| iShares MSCI EM Asia UCITS ETF (Acc)IE00B5L8K969 | 1,333 | 0.20% p.a. | Accumulating | Ireland | Full replication | |
| SPDR MSCI EM Asia UCITS ETFIE00B466KX20 | 1,281 | 0.55% p.a. | Accumulating | Ireland | Optimized sampling | |
| HSBC MSCI AC Far East ex Japan UCITS ETF USDIE00BBQ2W338 | 558 | 0.45% p.a. | Accumulating | Ireland | Optimized sampling | |
| Xtrackers MSCI AC Asia ex Japan Swap UCITS ETF 1CLU0322252171 | 553 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor MSCI AC Asia Ex Japan UCITS ETF - AccLU1900068161 | 417 | 0.50% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI EM Asia Swap UCITS ETF 1CLU0292107991 | 361 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 | 190 | 0.23% p.a. | Accumulating | Ireland | Swap-based | |
| Lyxor MSCI EM Asia UCITS ETF - AccLU1781541849 | 181 | 0.12% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| HSBC MSCI EM Far East UCITS ETF USDIE00B5LP3W10 | 26 | 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 Far East ex Japan | 0.14% | 7.04% | 20.68% | 44.28% | 32.99% | |
| MSCI AC Asia ex Japan | 0.69% | 7.32% | 21.17% | 45.79% | 33.02% | |
| MSCI Emerging Markets Far East | -0.41% | 6.52% | 21.24% | 48.21% | 35.75% | |
| MSCI Emerging Markets Asia | 0.18% | 6.26% | 20.91% | 48.89% | 35.59% |
| Index | 2021 in % |
2020 in % |
2019 in % |
2018 in % |
2017 in % |
|
|---|---|---|---|---|---|---|
| MSCI Emerging Markets Far East | 6.52% | 19.38% | 21.66% | -12.53% | 25.59% | |
| MSCI Emerging Markets Asia | 6.93% | 17.29% | 20.85% | -11.64% | 24.79% | |
| MSCI AC Far East ex Japan | 7.41% | 14.54% | 20.95% | -11.69% | 24.08% | |
| MSCI AC Asia ex Japan | 7.80% | 13.42% | 20.32% | -11.47% | 24.22% |
Source: justETF.com; As of 31/03/2021; Calculations in EUR based on the largest ETF of the respective index.