China is the world’s second biggest economy behind the US. It is the world’s largest importer of crude oil, largest automobile market and the largest smartphone market. It has been the biggest contributor to the global growth in the last decade.
Chinese economy and stock markets were hit hard by the Coronavirus in Q1. However, as of mid-March, China seems to be on a path of recovery. Companies have resumed operations and employees are returning to work. 95% of large companies and over 60% SMEs have resumed operations, and analysts expect pent up consumption to contribute to 15% GDP growth in Q2 (Source: Reuters). Retails stores like Apple, Starbucks and Uniqlo have reopened most of their stores in the country. For investors looking to participate in the continued Chinese growth, this could be a good time to think about portfolio allocation to Chinese stocks.
However, Chinese stock market is not easy to trade and navigate for international investors. To open a brokerage account in China, one has to go through several obstacles including parsing websites with instructions in Mandarin. Trading in individual Chinese stocks also carries risks of isolated impacts of government policies, potential frauds and trading sentiment on that specific company.
An easier (and potentially safer) route to participate in Chinese recovery and growth from India is investing in China focused ETFs in the US which have low fees and good liquidity. Several US listed ETFs provide exposure to different sectors or themes within China. Let us go through some of the most popular and liquid Chinese ETFs listed in the US.
With Winvesta, you can now open an account in as little as 10 minutes and start investing in the Chinese and US ETFs and stocks on the US exchange.
Get StartedBeyond ETFs, many Chinese stocks like Alibaba (NYSE: BABA) are also listed in the US as ADRs (American Depository Receipts). These are also available for Indian investors looking to get exposure to individual companies.
The great news is, some of these major China ETFs and stocks like BABA are available for investing for free through the Winvesta app. Others will be added soon to Free or the Base Tier. You can open an account in as little as 10 minutes online, and start building a global portfolio right from your phone.