How to invest in China – 3 fund ideas

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In our latest deep-dive into China, we look at three fund ideas to gain exposure to the Chinese economy and stock market.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Published on 27 November 2023

It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.

Since ending its three-year lockdown at the beginning of the year, China’s stock market has been on a wild ride. With a struggling property sector and a disheartened consumer, it's not surprising that sentiment towards the world's second-largest economy has been bleak.

Looking back over the past five years, the FTSE China Index has fallen 10.31%*, which is well behind the broader Asian and emerging market indices.

4 reasons for slower Chinese growth and what’s next?

For fund managers investing in these markets, the decision to be underweight or overweight on China compared to a relevant index has significantly impacted relative performance. And the increased ups and downs have understandably put off many investors.

Past performance isn’t a guide to the future. *Source: Lipper, to 31/10/2023

Despite these headwinds, is it too soon to