How to invest in the Chinese market with ETFs

Dimitrios Gourtzilidis
Jan 2 · 2 min read

China in the early ’00s was the fastest growing economy and now, in some listings, is the biggest market on the planet. It is also known that China doesn’t have the best relations with the west after US President Donald Trump started a trade war with them. This led investors unable to invest in Chinese companies. ETFs are the solution to this problem. In this article, I will present 4 ETFs that contain Chinese companies.

  • Symbol: FXI
  • Closing Price: $44.52
  • Annual Expense Ratio: 0.74%
  • Overall Rating on ETF.com: B

FXI is the biggest Chinese ETF. It contains the 50 biggest and most liquid Chinese stocks listed on the Hong Kong stock exchange. It contains stocks from companies like Meituan-Dianping a Chinese shopping platform for the local market, Tencent Holdings a multinational technology holding company, and, of course, Alibaba the e-commerce giant.

  • Symbol: MCHI
  • Closing Price: $77.44
  • Annual Expense Ratio: 0.59%
  • Overall Rating on ETF.com: D

It’s the second-biggest Chinese ETF with companies from Hong Kong, the Chinese mainland, and Chinese companies listed in the US, like Alibaba. It contains companies with all market-cap sizes.

  • Symbol: KWEB
  • Closing Price: $70.40
  • Annual Expense Ratio: 0.76%
  • Overall Rating on ETF.com: D

This ETF contains Chinese internet companies listed in various exchanges. Some of them are the e-commerce giant Alibaba and the Chinese search engine Baidu.

  • Symbol: ASHR
  • Closing Price: $35.47
  • Annual Expense Ratio: 0.65%
  • Overall Rating on ETF.com: D

ASHR contains Chinese mainland-only stocks and it holds the 300 largest and most liquid Chinese stocks, traded in the Shanghai and Shenzhen exchanges. It stretches across various sectors such as financials, consumer non-cyclical, technology, industrial, healthcare, and more.

DISCLAIMER:

You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose. The information contained in this article is for educational purposes only and is not to be a recommendation for any specific investment. Trading any market carries a high level of risk, and may not be suitable for all investors.

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