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Investing in Chinese stocks

Its economy is booming, but US tensions could force Chinese stocks off American exchanges.

Interested in adding Chinese shares to your portfolio? Chinese growth stocks are plentiful and easily accessed from a domestic brokerage account. But the future of these stocks on US exchanges remains uncertain — especially for state-owned enterprises.

What are Chinese stocks?

Chinese stocks originate from companies that are headquartered in China. Like the US, there are multiple Chinese stock exchanges — including the Hong Kong Stock Exchange, the Shanghai Stock Exchange and the Shenzhen Stock Exchange.

How to buy Chinese stocks from the US

There are a few ways for US investors to add Chinese stocks to their portfolios, including stocks, exchange-traded funds (ETFs) and American Depositary Receipts (ADRs).

With an international brokerage account, you can purchase Chinese stocks directly from Chinese exchanges. Not many US brokers offer international trading, but there are a few that offer access to Asian markets, including Moomoo and Interactive Brokers.

For investors who aren’t ready for an international brokerage account, numerous Chinese companies also list shares on the NYSE and Nasdaq, offering investment opportunities for US investors with domestic brokerage accounts.

ETFs that track Chinese stocks are another way for US investors to diversify into Chinese investments. And Chinese ADRs — certificates that represent shares of foreign stock — can be bought and sold from domestic brokerage accounts.

Interactive Brokers

Our pick: Interactive Brokers

Interactive Brokers offers an impressive range of tools and low fees for active or professional investors.

  • Create watchlists, set alerts and follow news on the Trader Workstation platform
  • Choose from IBKR Pro or IBKR Lite depending on your investing style
  • All users older than 21 must meet a $20,000 liquid net worth requirement for a cash account
Compare similar brands
to Interactive Brokers

Read review
Available asset types Stocks, Bonds, Options, Mutual funds, ETFs, Cryptocurrency, Currencies
Stock trade fee $0
Option trade fee $0 + $0.65/contract
Annual fee 0%

Why invest in Chinese stocks?

China’s economy is on the rise, and its businesses are poised for growth. China is the world’s second-largest economy, second only to the United States. And it enjoys this position thanks to an average economic growth rate of over 6% for nearly 30 years, making it the fastest-growing major economy in the world.

China is also the world’s largest exporter, boasting an export value of approximately $2.5 trillion USD in 2019, according to Statista. In fact, the country’s year-over-year export growth hovered near 17% from 2002 to 2012.

The bottom line? China is a major driver of economic growth and backing Chinese companies presents a potentially lucrative investment opportunity for US investors.

Risks of investing in Chinese stocks

Chinese stocks present unique risks. Many Chinese companies are state-owned, and ongoing tensions between China and the US could result in Chinese stocks being delisted from US exchanges.

In 2017, there were 102 state-owned enterprises (SOEs) in the Fortune Global 500. Of those 102 SOEs, 75 of them were from China. In fact, there are over 150,000 state-owned enterprises in China, according to the China Journal of Accounting Research. Why does this matter? These SOEs have been accused of receiving unfair advantages, like low-cost loans, while yielding less competitive returns than their privately run counterparts.

China has plans to reform its SOEs, but it’s difficult to say what this reform will look like or what impact it could have on privately held Chinese companies.

And speaking of reform, ongoing tensions between China and the United States have led to the Holding Foreign Companies Accountable Act: a bill introduced by the US Congress that requires companies listed on US exchanges to declare any connections with foreign governments. The bill also states that companies listed on US exchanges must submit to audits of the company’s financial performance.

For Chinese companies listed on US exchanges, the bill is problematic and could potentially result in numerous Chinese stocks delisting from US exchanges.

Chinese stocks listed on US exchanges

Over 130 Chinese stocks trade on the New York Stock Exchange and the Nasdaq. You can buy, sell or hold these stocks with a domestic brokerage account the same way you would any US stock. Select a company to learn more about what they do and how their stock performs, including market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield. While this list includes a selection of the most well-known and popular stocks, it doesn't include every stock available.

Over-the-counter (OTC) Chinese stocks

There are many well-established Chinese companies that don’t trade on US exchanges. If you hold an international brokerage account, you can purchase shares directly from Chinese markets.

And investors with domestic brokerage accounts can invest by buying American Depositary Receipts (ADRs) in OTC exchanges. Over 150 Chinese companies are listed in American OTC markets. ADRs can be purchased through any domestic brokerage account that offers access to OTC investments.

  • China Railway Construction (CWYCY)
  • China Railway Group (CRWOF)
  • Industrial and Commercial Bank of China (IDCBY)
  • Ping An Insurance (PNGAY)

What ETFs track Chinese stocks?

Another option for US investors interested in adding Chinese stocks to their portfolio is by purchasing ETFs that invest in Chinese companies. While this is a less direct investment than purchasing shares, an ETF that tracks Chinese stocks offers broad exposure to a number of securities as opposed to just one.

  • iShares MSCI China ETF
  • KraneShares CSI China Internet ETF
  • Renaissance Capital’s International IPO ETF
  • SPDR S&P China ETF

Compare trading platforms

Many Chinese stocks can be purchased from a domestic brokerage account. Narrow down your options by comparing features, fees and research tools.

Name Product Asset types Option trade fee Annual fee Signup bonus
M1 Finance
Free 1-year trial of M1 Plus
when you sign up for M1 Finance
Invest in your favorite stocks or in curated portfolios with automatic rebalancing.
SoFi Invest
Stocks, ETFs, Cryptocurrency
Get one free stock worth up to $1,000
Open an account
A free way to invest in most equities.
Stocks, Bonds, Options, Mutual funds, ETFs, Cryptocurrency
$0 + $0.50/contract
$0 per month
$10 of crypto
Open an account with access to crypto
A platform built for all kinds of traders and all styles of trading
Stocks, Options, ETFs, Cryptocurrency
Free stock (chosen randomly with a value anywhere between $2.50 and $200)
Sign up using the "go to site" link
Make unlimited commission-free trades in stocks, funds, and options with Robinhood Financial.
Stash Invest
Stocks, ETFs
$1 per month
Add at least $5 to your Invest account
Stash is more than an investment app. You’ll have access to tools that can help you become a confident investor.
Stocks, ETFs, Cryptocurrency
$0 per month
Download and sign up with; approved accounts receive a free stock slice worth up to $300, selected from 9 popular stocks.
Open an account
Commission-free trading in stocks and ETFs with a social networking twist.

Compare up to 4 providers

*Signup bonus information updated weekly.

Disclaimer: The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Bottom line

There are numerous ways to invest in Chinese stocks from a US brokerage account. And for those who prefer to invest in Asian markets directly, brokers like Moomoo and Interactive Brokers offer international brokerage accounts.

Before you open an account, explore available trading platforms by fees and available markets to find the broker that is best positioned to serve your investment goals.

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