VVested

Market guide

Investing in China

Two major mainland exchanges plus Hong Kong as the global gateway — but capital controls, Stock Connect quotas, and VIE-structure risk shape how foreigners actually buy in.

Market cap:~$15T combined Shanghai + Shenzhen (end-2025); A-share market crossed CNY 100TCurrency:CNYRegulator:CSRC

01 — Market overview

The shape of the market

Exchanges

  • Shanghai Stock Exchange (SSE)
  • Shenzhen Stock Exchange (SZSE)
  • Beijing Stock Exchange

Headline indices

  • SSE Composite
  • CSI 300
  • ChiNext

Top sectors

  • Financials
  • Industrials
  • Information technology

Currency

  • CNY

Regulator

  • CSRC (China Securities Regulatory Commission)

Market capitalization

  • ~$15T combined Shanghai + Shenzhen (end-2025); A-share market crossed CNY 100T

02 — Ways to invest

What you can actually buy

A non-exhaustive inventory of instruments available in this market — stocks, ETFs, ADRs, REITs, bonds — with notes on access.

Stocks
A-shares (RMB, mainland) open to foreigners only via Stock Connect or QFI; B-shares (USD/HKD) and H-shares (Hong Kong) are accessible directly.
ETFs
Large onshore ETF market; foreigners access via Stock Connect or HK-listed China ETFs (2823.HK, ASHR US).
Mutual funds
Massive domestic mutual fund industry; cross-border via QFI / Mainland-HK Mutual Recognition.
ADRs / DRs
Many Chinese ADRs in the US (BABA, JD, PDD, BIDU). Delisting risk has prompted HK secondary listings for most large names.
REITs
Public infrastructure REIT (C-REIT) market launched 2021; still small (~CNY 200B). Accessible via Stock Connect.
Bonds
Bond Connect and CIBM Direct allow foreign access to onshore China Government Bonds and policy-bank bonds.

03 — Access & brokers

How a foreign retail investor gets in

Brokers that serve non-residents

  • Interactive Brokers (HK-listed + Stock Connect)
  • Futu / Tiger Brokers
  • HSBC HK / Hang Seng (HK brokerage accounts)

Choosing a platform? Compare Vested, INDmoney, IBKR & Rovia →

KYC & onboarding

Foreign retail trades via an HK broker using Stock Connect (Northbound); no separate mainland account needed.

Notable restrictions

A-shares limited to eligible Stock Connect names; Northbound day-trading and short-selling are restricted; capital controls on RMB outflows.

04 — Tax & regulatory

What gets taxed, by whom

Headline tax treatment for foreign retail investors. Specific situations — large holdings, real-estate-rich entities, treaty residency — can diverge. Always confirm with a qualified advisor.

Capital gains

Foreign individuals are temporarily exempt from CGT on A-share gains via Stock Connect (extension currently runs through 2027). Residents: 0% on most listed-share gains.

Dividend withholding

10% statutory on dividends to non-residents.

India DTAA

Yes — 10% dividend withholding under the India–China DTAA.

05 — For Indian residents

The India-specific angle

What changes when you're investing from India — LRS eligibility, Indian feeder-fund options, and the tax / reporting gotchas you should know upfront.

Eligible under the Liberalised Remittance Scheme

Indian residents can remit up to $250,000 per FY to invest here, subject to 20% TCS above the threshold.

Indian feeder options

Edelweiss Greater China Equity Off-shore FoF and a handful of Asia-focused FoFs offer indirect exposure (the RBI overseas-MF limit has capped fresh inflows multiple times).

Caveat / pitfall

Easier to access via HK-listed China names or US-listed Chinese ADRs than via mainland Stock Connect. Schedule FA disclosure mandatory; geopolitical and VIE-structure risk on ADRs.

06 — Drill down

Pillar guides on China

Four deep-dives we're writing on how to actually execute in China. Each becomes a full article at /china/[slug].

07 — Tools

Related calculators

Free Vested calculators relevant when you're investing in China.

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