China is the world’s second-largest economy and home to some of the biggest technology, e-commerce and financial companies globally. US investors can access Chinese stocks through ADRs on major exchanges, OTC markets or international brokerage accounts. But investing in Chinese stocks carries unique regulatory, geopolitical and structural risks that have intensified significantly since 2020.
What are Chinese stocks?
Chinese stocks originate from companies headquartered in or substantially controlled from China. There are multiple Chinese stock exchanges, including the Hong Kong Stock Exchange, the Shanghai Stock Exchange and the Shenzhen Stock Exchange.
Most Chinese companies listed on US exchanges are structured as Variable Interest Entities (VIEs). Under a VIE structure, US investors don’t directly own equity in the Chinese operating company. Instead, they own shares in a holding company (typically incorporated in the Cayman Islands) that has contractual arrangements with the Chinese business. This structure exists because Chinese law restricts foreign ownership of companies in certain sectors. It’s an important distinction because VIE contracts are not guaranteed by Chinese courts, and Chinese regulators have periodically questioned their legality.
How to buy Chinese stocks from the US
There are several ways for US investors to add Chinese stocks to their portfolios.
US-listed shares. Many Chinese companies list directly on the NYSE or Nasdaq. You can buy, sell and hold these stocks with a standard domestic brokerage account the same way you would any US stock.
American Depositary Receipts (ADRs). ADRs are certificates that represent shares of foreign stock and can be bought from domestic brokerage accounts, including those trading on OTC markets.
ETFs. Exchange-traded funds that track Chinese stock indexes provide broad exposure to Chinese equities without picking individual stocks.
International brokerage accounts. To purchase shares directly from the Hong Kong, Shanghai or Shenzhen exchanges, you’ll need a brokerage with international market access, such as Interactive Brokers or Moomoo.
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Types of Chinese shares
Chinese stocks come in several classes, each with different trading access.
A-shares. Trade on the Shanghai and Shenzhen exchanges in Chinese yuan. Historically restricted to domestic Chinese investors, though foreign institutional investors can access them through the Qualified Foreign Institutional Investor (QFII) program and the Stock Connect programs linking Hong Kong with Shanghai and Shenzhen.
H-shares. Shares of Chinese companies listed on the Hong Kong Stock Exchange. Open to international investors.
N-shares. Shares of Chinese-origin companies listed on the NYSE, Nasdaq or NYSE American. These can be traded like any US stock.
ADRs. Represent shares of Chinese companies and trade on US exchanges or OTC markets in US dollars.
Why invest in Chinese stocks?
China remains the world’s second-largest economy and the largest manufacturing and exporting nation. Despite a slowdown from its historical growth rates, several factors make Chinese stocks attractive to some investors.
Scale and market depth. China’s economy generates roughly $18 trillion in annual GDP. The country is home to globally significant companies in e-commerce (Alibaba, JD.com, PDD Holdings), social media and gaming (Tencent, NetEase), electric vehicles (BYD, NIO, XPeng) and AI (Baidu, DeepSeek’s impact on sentiment).
Valuations. After a severe selloff from 2021 to early 2024 driven by regulatory crackdowns and economic headwinds, many Chinese stocks trade at significant discounts to their US and European peers on a price-to-earnings basis.
AI and tech momentum. The launch of DeepSeek’s AI model in January 2025 triggered a rally in Chinese tech stocks, renewing investor interest in the sector and highlighting China’s competitiveness in AI development.
Diversification. Chinese stocks often move independently of US markets, offering portfolio diversification benefits. The correlation between Chinese and US equities has been relatively low compared to other developed markets.
Risks of investing in Chinese stocks
Chinese stocks carry risks that go well beyond normal market volatility. Several of these risks are unique to China and have materialized in significant ways since 2020.
Regulatory crackdowns. Beginning in late 2020, Chinese authorities launched a sweeping crackdown on the technology, education, gaming and fintech sectors. Ant Group’s IPO was cancelled days before launch. Alibaba was fined $2.8 billion for anticompetitive practices. Didi was forced to delist from the NYSE. The education tutoring industry was effectively shut down. These actions wiped trillions of dollars from Chinese tech stocks and demonstrated the Chinese government’s willingness to intervene in private enterprise with little warning.
VIE structure risk. Most US-listed Chinese companies use VIE structures that don’t give investors direct equity ownership. Chinese regulators have signaled tolerance for VIEs but have never formally endorsed them. A policy reversal could undermine the legal basis of US investors’ ownership claims.
Delisting risk. The Holding Foreign Companies Accountable Act (HFCAA), signed into law in December 2020, requires that Chinese companies listed on US exchanges submit to PCAOB audit inspections or face delisting after two consecutive non-compliant years. In 2022, China allowed PCAOB inspections for the first time, and the PCAOB vacated its inability-to-inspect determination in December 2022. However, delisting concerns have resurfaced under the current Trump administration, with renewed political pressure and potential new executive actions targeting US-listed Chinese companies. At least 13 Chinese companies have voluntarily delisted from US exchanges since 2020, and the total market cap of US-listed Chinese companies has declined from $2.1 trillion to roughly $1.1 trillion as of March 2025.
Economic headwinds. China’s economy has slowed considerably from its historical growth rates. Official GDP growth was reported at 5% in both 2024 and 2025, though independent analysts at Rhodium Group estimate actual growth was closer to 2.4-2.8% in 2024. The country faces a prolonged property crisis (with property investment falling 17.2% in 2025), deflationary pressures, high youth unemployment and weak consumer spending.
US-China tensions and tariffs. The trade war has escalated under both the Biden and second Trump administrations. Tariffs on Chinese goods, export controls on semiconductors and restrictions on US investment in Chinese tech companies all create uncertainty for Chinese stocks.
Opacity of financial reporting. Despite progress on PCAOB audit access, Chinese financial reporting standards and transparency differ from US norms. State influence on corporate governance, data restrictions and limited legal recourse for foreign shareholders add layers of risk.
The dual-listing trend
Since 2020, many major US-listed Chinese companies have obtained secondary or primary listings on the Hong Kong Stock Exchange as a hedge against potential US delisting. Companies that have completed Hong Kong listings include Alibaba, JD.com, Baidu, NetEase, Bilibili and others.
This trend matters for US investors because it provides a fallback. If a Chinese stock is delisted from a US exchange, investors who hold shares in a company with a Hong Kong listing may be able to convert their holdings to Hong Kong-listed shares, depending on their brokerage and the terms of the delisting. However, this process isn’t guaranteed to be seamless, and currency conversion and different trading hours add complexity.
Chinese stocks listed on US exchanges
Chinese companies listed on the NYSE and Nasdaq can be bought, sold and held with a standard domestic brokerage account. The number of US-listed Chinese stocks has declined from its peak as some companies have voluntarily delisted or gone private.
China’s largest express delivery company by parcel volume, benefiting from the growth of domestic e-commerce.
Over-the-counter (OTC) Chinese stocks
Many large Chinese companies, including some that were previously listed on US exchanges, trade as ADRs on OTC markets. ADRs can be purchased through any domestic brokerage account that offers access to OTC investments. Note that some Chinese companies were moved to OTC markets after being delisted from the NYSE due to executive orders targeting companies linked to China’s military.
China Mobile (CHLKF)
China Railway Construction (CWYCY)
CITIC Ltd (CTPCF)
Industrial and Commercial Bank of China (IDCBY)
Ping An Insurance (PNGAY)
What ETFs track Chinese stocks?
ETFs provide diversified exposure to Chinese equities without requiring you to pick individual stocks. Some of the most widely held China-focused ETFs include:
iShares MSCI China ETF (MCHI). Broad exposure to large and mid-cap Chinese stocks across multiple exchanges.
KraneShares CSI China Internet ETF (KWEB). Focused on Chinese internet and technology companies. One of the most popular China tech ETFs.
SPDR S&P China ETF (GXC). Tracks the S&P China BMI Index, providing broad market-cap-weighted exposure.
Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR). Provides direct access to China A-shares traded on the Shanghai and Shenzhen exchanges.
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.
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Chinese stocks offer access to one of the world’s largest economies and some globally significant technology and consumer companies. But investing in Chinese equities carries risks that are fundamentally different from investing in US stocks, including regulatory intervention, VIE structure uncertainty, delisting threats and geopolitical tensions.
Investors who are comfortable with these risks may find opportunities in a market that trades at discounted valuations relative to the US. Those who prefer less direct exposure can consider China-focused ETFs. In either case, confirm that your brokerage supports the markets where your target Chinese stocks are listed before you invest.
Before you open an account, explore available trading platforms by fees and available markets to find the broker that best fits your goals.
Yes. Several major Chinese companies pay dividends to US shareholders, including Tencent, NetEase, JD.com, PDD Holdings and ZTO Express. Dividend yields vary, and payments may be subject to Chinese withholding tax (typically 10%) before reaching US investors. Check with your brokerage for details on tax treatment.
You retain your ownership stake in the company, but your options become more limited. Companies delisted from major exchanges are typically moved to OTC markets, where trading may be less liquid. If the company has a dual listing in Hong Kong, you may be able to convert your shares, depending on your brokerage. In some cases, companies going private may make a buyout offer to US shareholders, though the price may be at a discount. The specific outcome depends on the terms of the delisting and whether the company has alternative listings.
A Variable Interest Entity (VIE) is a corporate structure used by most Chinese companies listed on US exchanges. Because Chinese law restricts foreign ownership in sectors like technology and media, US investors don't directly own equity in the Chinese operating company. Instead, they own shares in an offshore holding company (usually in the Cayman Islands) that has contractual agreements with the Chinese entity. This means your investment depends on the enforceability of contracts under Chinese law, which introduces a layer of legal risk not present with US stocks.
The immediate threat has eased. In December 2022, the PCAOB confirmed it was able to inspect Chinese auditors for the first time, and vacated its prior inability-to-inspect determination. Currently no issuers are at risk of trading prohibitions under the HFCAA. However, the PCAOB must continue to have access to inspect Chinese auditors going forward. If China reverses course, the two-year delisting clock would restart. Political pressure to delist Chinese companies from US exchanges has also resurfaced under the current administration through potential executive action.
Chinese authorities launched a broad regulatory crackdown targeting technology, fintech, e-commerce, gaming and education companies. High-profile actions included the cancellation of Ant Group's IPO, a $2.8 billion antitrust fine against Alibaba, the forced delisting of Didi from the NYSE and the effective shutdown of the for-profit tutoring industry. Combined with concerns about the HFCAA and a slowing Chinese economy, these actions drove Chinese tech stocks down dramatically. Many stocks lost 60-80% of their value from their 2021 peaks.
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Shannon Terrell is a lead writer and spokesperson at NerdWallet and a former editor at Finder, specializing in personal finance. Her writing and analysis on investing and banking has been featured in Bloomberg, Global News, Yahoo Finance, GoBankingRates and Black Enterprise. She holds a bachelor’s degree in communications and English literature from the University of Toronto Mississauga.
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