What Chinese ETFs to buy to diversify into the China stock market?

China stocks are still relatively underrepresented by global stock indices (i.e. China and South Korea stocks comprise about 36% and 14% of MSCI Emerging Market Index, but China’s GDP is close to 8x that of South Korea). So I personally think it's worth adding more exposure.

Before you select the specific ETF, you should first think about which aspect of China are you keen to invest on. In my view, you can overweigh the below themes by using the respective China Indices.

1. China tech: MSCI China Index

2. China’s growing domestic consumption: CSI 300 Index or MSCI China A Index

3. China’s State-Owned Enterprises: FTSE A50 Index

4. Converging valuations between A/H shares: HSCEI Index

Once you have chosen the appropriate Index to track, you can then consider the ETF, which I have listed below.

• MSCI China Index: Use iShare Core MSCI China ETF (2801 HK) or iShares MSCI China ETF (MCHI US)

• MSCI China A Index: Use iShares MSCI China A ETF (CNYA LN)

• CSI 300 Index: Use ChinaAMC CSI 300 Index ETF (3188 HK) or Xtrackers Harvest CSI 300 China ETF (ASHR US)

• FTSE A50 Index: Use CSOP FTSE China A50 ETF (2822 HK)

• HSCEI Index: Use Hang Seng China Enterprises Index ETF (2828 HK)

Personally, I would prefer broad based market exposure via MSCI China Index, or HSCEI Index (which trades at relatively cheaper valuations).

You can also view the below article for more details.

https://theinvestquest.com/best-etf-to-buy-for-...

Hi Anon,

Since you are already on Syfe, you may take a look at Syfe's newest portfolios : Core Growth, Core Balanced and Core Defensive. These portfolios have chinese and us etfs that gives you more exposure.

There are different asset class holdings based on your desired risk level.