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 9 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.
Performance of Chinese stocks (MSCI China)
1 month: -2,28%
1 year: 17,11%
3 years: -18,41%
5 years: -5,39%
Indices in comparison
The best indices for ETFs on China
For an investment in the Chinese stock market, there are 9 indices available which are tracked by 23 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 | 3 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 | 7 ETFs | 597 (30-09-2024) | 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 | 4 ETFs | 560 (30-09-2024) | 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 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 EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI China A UCITS ETFIE00BQT3WG13 | 2.608 | 0,40% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| Xtrackers CSI 300 Swap UCITS ETF 1CLU0779800910 | 1.370 | 0,50% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| iShares MSCI China UCITS ETF USD (Acc)IE00BJ5JPG56 | 1.333 | 0,28% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| Xtrackers MSCI China UCITS ETF 1CLU0514695690 | 1.027 | 0,65% p.a. | Accumulerend | Luxemburg | Volledige replicatie | |
| Franklin FTSE China UCITS ETFIE00BHZRR147 | 769 | 0,19% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| iShares China Large Cap UCITS ETFIE00B02KXK85 | 655 | 0,74% p.a. | Distribueren | Ierland | Volledige replicatie | |
| HSBC MSCI China UCITS ETF USDIE00B44T3H88 | 600 | 0,28% p.a. | Distribueren | Ierland | Volledige replicatie | |
| Amundi MSCI China UCITS ETF AccLU1841731745 | 386 | 0,29% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| Xtrackers MSCI China UCITS ETF 1DLU2456436083 | 385 | 0,28% p.a. | Distribueren | Luxemburg | Volledige replicatie | |
| Amundi MSCI China A II UCITS ETF DistLU2572256746 | 302 | 0,25% p.a. | Distribueren | Luxemburg | Niet-gefinancierde swap | |
| Xtrackers Harvest CSI 300 UCITS ETF 1DLU0875160326 | 299 | 0,65% p.a. | Distribueren | Luxemburg | Volledige replicatie | |
| Amundi MSCI China A UCITS ETF AccFR0011720911 | 205 | 0,35% p.a. | Accumulerend | Frankrijk | Volledige replicatie | |
| Xtrackers FTSE China 50 UCITS ETF 1CLU0292109856 | 182 | 0,60% p.a. | Accumulerend | Luxemburg | Volledige replicatie | |
| HSBC MSCI China UCITS ETF USD (Acc)IE0007P4PBU1 | 160 | 0,28% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| HSBC MSCI China A Inclusion UCITS ETFIE00BF4NQ904 | 157 | 0,30% p.a. | Distribueren | Ierland | Volledige replicatie | |
| UBS ETF (IE) MSCI China A SF UCITS ETF (USD) A-accIE00BKFB6K94 | 94 | 0,24% p.a. | Accumulerend | Ierland | Swap-gebaseerd | |
| Invesco MSCI China All Shares Stock Connect UCITS ETF AccIE00BK80XL30 | 57 | 0,35% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| iShares MSCI China UCITS ETF USD (Dist)IE00BL977C92 | 26 | 0,28% p.a. | Distribueren | Ierland | Volledige replicatie | |
| Invesco S&P China A 300 Swap UCITS ETF AccIE000K9Z3SF5 | 17 | 0,35% p.a. | Accumulerend | Ierland | Niet-gefinancierde swap | |
| L&G E Fund MSCI China A UCITS ETFIE00BHBFDF83 | 15 | 0,88% p.a. | Accumulerend | Ierland | Geoptimaliseerde sampling | |
| Xtrackers Harvest FTSE China A-H 50 UCITS ETF 1DLU1310477036 | 10 | 0,65% p.a. | Distribueren | Luxemburg | Volledige replicatie | |
| iShares China Large Cap UCITS ETF USD (Acc)IE000QOU09J7 | 6 | 0,74% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| HSBC MSCI China A UCITS ETF USD (Acc)IE000Z4OYPZ6 | 1 | 0,30% p.a. | Accumulerend | Ierland | Volledige replicatie |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI China A Inclusion | 20,94% | 16,14% | 14,92% | 7,86% | -18,85% | |
| MSCI China A | 21,43% | 16,84% | 16,79% | 10,69% | - | |
| CSI 300 | 21,40% | 16,91% | 16,91% | 11,16% | -10,21% | |
| FTSE China A-H 50 | 19,01% | 14,98% | 18,40% | 11,92% | -8,73% | |
| S&P China A 300 | 21,96% | 17,12% | 16,83% | 12,11% | - | |
| MSCI China All Shares Stock Connect Select | 21,96% | 17,13% | 21,52% | 14,85% | -16,07% | |
| FTSE China 30/18 Capped | 23,33% | 18,25% | 26,67% | 16,52% | -14,18% | |
| MSCI China | 22,64% | 17,88% | 27,09% | 16,97% | -13,50% | |
| FTSE China 50 | 21,52% | 20,02% | 31,41% | 19,27% | -6,23% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| MSCI China A Inclusion | 18,01% | -16,78% | -21,58% | 11,33% | 30,28% | |
| MSCI China A | 19,90% | - | - | - | - | |
| CSI 300 | 20,58% | -12,91% | -19,91% | 11,68% | 32,87% | |
| S&P China A 300 | 21,65% | -13,59% | - | - | - | |
| FTSE China A-H 50 | 23,07% | -15,02% | -16,55% | 1,98% | 17,22% | |
| MSCI China All Shares Stock Connect Select | 23,49% | -15,45% | -19,10% | - | - | |
| FTSE China 30/18 Capped | 27,21% | -14,97% | -18,16% | -13,60% | 19,47% | |
| MSCI China | 27,45% | -14,39% | -17,43% | -15,41% | 17,98% | |
| FTSE China 50 | 35,88% | -16,58% | -15,07% | -14,06% | 0,79% |
Source: justETF.com; As of 30-09-2024; Calculations in EUR based on the largest ETF of the respective index.
The best China ETFs
by 1 year return
| 1 | iShares China Large Cap UCITS ETF USD (Acc) | 19,61% |
| 2 | Xtrackers FTSE China 50 UCITS ETF 1C | 19,50% |
| 3 | iShares China Large Cap UCITS ETF | 19,27% |
The cheapest China ETFs
by total expense ratio (TER)
| 1 | Franklin FTSE China UCITS ETF | 0,19% p.a. |
| 2 | UBS ETF (IE) MSCI China A SF UCITS ETF (USD) A-acc | 0,24% p.a. |
| 3 | Amundi MSCI China A II UCITS ETF Dist | 0,25% 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
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 19 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 | Opkomende markten 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 | Opkomende markten China: 33.14% (30/11/2022) | 2 ETFs | 2.219 (28-06-2024) | The FTSE Emerging index tracks stocks from emerging markets worldwide. Index factsheet |
| MSCI Emerging Markets | Opkomende markten China: 30.40% (30/11/2022) | 16 ETFs | 1.277 (30-09-2024) | 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 | 5.542 | 0,18% p.a. | Accumulerend | Ierland | Geoptimaliseerde sampling | |
| iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 | 4.557 | 0,18% p.a. | Distribueren | Ierland | Volledige replicatie | |
| iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 | 3.332 | 0,18% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR (C)LU1437017350 | 3.105 | 0,18% p.a. | Accumulerend | Luxemburg | Volledige replicatie | |
| HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 | 2.447 | 0,15% p.a. | Distribueren | Ierland | Volledige replicatie | |
| Amundi MSCI Emerging Markets UCITS ETF EUR (C)LU1681045370 | 2.401 | 0,20% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| Vanguard FTSE Emerging Markets UCITS ETF DistributingIE00B3VVMM84 | 2.334 | 0,22% p.a. | Distribueren | Ierland | Geoptimaliseerde sampling | |
| Amundi MSCI Emerging Markets II UCITS ETF DistLU2573966905 | 2.273 | 0,14% p.a. | Distribueren | Luxemburg | Niet-gefinancierde swap | |
| UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 | 1.447 | 0,18% p.a. | Distribueren | Luxemburg | Geoptimaliseerde sampling | |
| Amundi MSCI Emerging Markets III UCITS ETF EUR AccFR0010429068 | 899 | 0,55% p.a. | Accumulerend | Frankrijk | Niet-gefinancierde swap | |
| Amundi MSCI Emerging Markets UCITS ETF USDLU1681045453 | 888 | 0,20% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 | 628 | 0,18% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 | 602 | 0,49% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| Vanguard FTSE Emerging Markets UCITS ETF AccIE00BK5BR733 | 597 | 0,22% p.a. | Accumulerend | Ierland | Geoptimaliseerde sampling | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR (D)LU1737652583 | 526 | 0,18% p.a. | Distribueren | Luxemburg | Volledige replicatie | |
| Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 | 422 | 0,19% p.a. | Accumulerend | Ierland | Niet-gefinancierde swap | |
| HSBC MSCI Emerging Markets UCITS ETF USD (Acc)IE000KCS7J59 | 277 | 0,15% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| iShares BIC 50 UCITS ETF USD (Dist)IE00B1W57M07 | 118 | 0,74% p.a. | Distribueren | Ierland | Volledige replicatie | |
| Amundi MSCI Emerging Markets III UCITS ETF USD AccFR0010435297 | 111 | 0,55% p.a. | Accumulerend | Frankrijk | Niet-gefinancierde swap |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| FTSE BIC 50 | 19,62% | 16,81% | 25,42% | 16,38% | -19,55% | |
| MSCI Emerging Markets | 5,60% | 3,92% | 9,97% | 19,21% | 4,15% | |
| FTSE Emerging | 7,10% | 5,57% | 12,39% | 19,54% | 8,45% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| MSCI Emerging Markets | 15,31% | 5,75% | -15,28% | 5,39% | 8,01% | |
| FTSE Emerging | 17,50% | 4,11% | -12,40% | 7,62% | 4,99% | |
| FTSE BIC 50 | 23,91% | -10,62% | -24,06% | -17,37% | 8,88% |
Source: justETF.com; As of 30-09-2024; Calculations in EUR 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 | Azië-Pacific China: 28.63% (30/11/2022) | 1 ETF | 1.132 (30-09-2024) | 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 | Azië-Pacific China: 34.64% (30/11/2022) | 1 ETF | 1.070 (30-09-2024) | 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 | Azië-Pacific China: 41.69% (30/11/2022) | 3 ETFs | 919 (30-09-2024) | 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 | Azië-Pacific China: 38.94% (30/11/2022) | 5 ETFs | 1.027 (30-09-2024) | The MSCI Emerging Markets Asia index tracks large and mid cap companies from Asian emerging markets. Index factsheet |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI EM Asia UCITS ETF (Acc)IE00B5L8K969 | 2.957 | 0,20% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| Amundi MSCI Emerging Markets Asia UCITS ETF EUR (C)LU1681044480 | 865 | 0,20% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| SPDR MSCI EM Asia UCITS ETFIE00B466KX20 | 862 | 0,55% p.a. | Accumulerend | Ierland | Volledige replicatie | |
| iShares MSCI AC Far East ex-Japan UCITS ETFIE00B0M63730 | 730 | 0,74% p.a. | Distribueren | Ierland | Volledige replicatie | |
| Amundi MSCI Emerging Markets Asia UCITS ETF USDLU1681044563 | 617 | 0,20% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| Amundi MSCI AC Asia Pacific Ex Japan UCITS ETF AccLU1900068328 | 385 | 0,60% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 | 304 | 0,23% p.a. | Accumulerend | Ierland | Swap-gebaseerd | |
| Amundi MSCI Emerging Asia II UCITS ETF AccLU1781541849 | 207 | 0,12% p.a. | Accumulerend | Luxemburg | Niet-gefinancierde swap | |
| HSBC MSCI AC Far East ex Japan UCITS ETF USDIE00BBQ2W338 | 123 | 0,45% p.a. | Accumulerend | Ierland | Geoptimaliseerde sampling | |
| iShares MSCI AC Far East ex-Japan UCITS ETF USD (Acc)IE00BKPX3K41 | 34 | 0,74% p.a. | Accumulerend | Ierland | Volledige replicatie |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI AC Far East ex Japan | 9,16% | 6,27% | 14,36% | 19,08% | -2,76% | |
| MSCI AC Asia ex Japan | 7,37% | 5,54% | 14,09% | 21,89% | 4,80% | |
| MSCI AC Asia Pacific ex Japan | 6,96% | 6,06% | 13,57% | 21,97% | 7,43% | |
| MSCI Emerging Markets Asia | 6,93% | 4,65% | 14,22% | 23,30% | 5,66% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| MSCI AC Far East ex Japan | 18,03% | -1,28% | -15,89% | -2,74% | 14,53% | |
| MSCI AC Asia Pacific ex Japan | 18,24% | 2,96% | -12,62% | 3,78% | 11,51% | |
| MSCI AC Asia ex Japan | 19,50% | 2,12% | -14,88% | 2,94% | 13,90% | |
| MSCI Emerging Markets Asia | 19,86% | 3,84% | -15,09% | 1,48% | 16,80% |
Source: justETF.com; As of 30-09-2024; Calculations in EUR based on the largest ETF of the respective index.