Top 10 Chinese Equity Funds to Consider in 2025

Chinese equity funds remain an attractive option for international fund investors in 2025. Despite recent market downturns, China—the world's second-largest economy—continues to show long-term growth potential. Let's explore 10 high-potential Chinese equity funds worth considering this year.

What Are Chinese Equity Funds and Their Types?

Chinese equity funds invest in companies listed on mainland China stock exchanges, administrative regions, and global markets. China's economy stands out in finance, technology, and e-commerce, creating highly liquid stock markets. Before investing in Chinese funds, understand these two main types:

Passive Funds (Index Funds) aim to match benchmark index performance as closely as possible. These funds offer moderate risk tolerance with lower fees, making them suitable for beginners in international fund investing.

Active Funds follow an aggressive investment approach with higher risk and potentially better returns. They offer more diverse fund options, with performance depending on fund managers' ability to exceed set benchmarks.

Both investment approaches are detailed in each fund's prospectus. Investors should carefully review this information before making investment decisions.

Top 10 Chinese Equity Funds Worth Considering in 2025

I've selected funds based on their performance over the past year:

1. SCBCEE - SCB China Equity Fund (Electronic Channel)

Aims for long-term capital growth through investments in Chinese equities. With year-to-date returns of 11.37% and three-year average annual returns of 6.88%, it shows strong short-term potential. The five-year return drops to just 0.56%, reflecting Chinese market volatility. Suitable for high-risk investors seeking growth potential in Chinese equities. No dividend payments.

2. SCBCEP - SCB China Equity Fund (Accumulation)

Focuses on long-term capital appreciation from Chinese equity investments. Year-to-date returns stand at 10.83% with three-year average annual returns of 5.94%. The five-year return is -0.33%, indicating recent market pressures. Appropriate for investors seeking Chinese market growth while accepting short to medium-term volatility. No dividend payments.

3. SCBCE (SSF) - SCB China Equity Super Savings Fund

A Super Savings Fund version of SCBCEE, investing in Chinese equities through the same master fund. Year-to-date returns of 10.92% with three-year average returns of 5.81% annually. Five-year return data isn't available. High risk with no dividend payments. Ideal for disciplined long-term investors seeking growth with SSF tax benefits.

4. SCBCE - SCB China Equity Fund

Similar portfolio structure and risk level to SCBCEE, targeting long-term capital gains from Chinese equity investments without dividend payments. Year-to-date returns of 10.91% with three-year returns of 5.81% annually. Five-year returns declined to -0.45%, reflecting Chinese market uncertainties. Suitable for high-risk investors prepared to weather downturns for long-term growth.

5. SCBCEHE - SCB China Equity Fund (Hedged)

Shows strong year-to-date returns of 14.63%, indicating good short-term potential. However, longer-term returns are weaker, with three-year annual returns of 4.30% and five-year returns of -2.09%, highlighting past volatility and uncertainty in Chinese equities. No dividend payments and considered high-risk. Suitable for experienced investors who can tolerate market volatility for long-term profits.

6. TISCOCH - TISCO China Equity Fund

Offers year-to-date returns of 14.18%, despite three-year returns of 3.65% and five-year returns of -3.26%, reflecting significant volatility. No dividend payments and classified as high-risk. Appropriate for long-term investors confident in Chinese market recovery. Recent returns are positive, but long-term trends indicate caution is needed.

7. TCHRMF - Thanachart China Equity Retirement Mutual Fund

A retirement mutual fund (RMF) under Thanachart Asset Management, focusing on long-term capital growth through Chinese equity investments. Year-to-date returns of 13.89% with three-year average returns of 3.57% annually. Five-year returns stand at -3.16%, reflecting the decline in China-related assets over time. Designed for retirement savings with no dividend payments and high risk.

8. KF-HSHARE-INDX - Krungsri H-Shares Index Fund

Year-to-date returns of 14.21%, but three-year returns of only 3.32% and five-year returns of -2.91%, showing weak long-term performance. No dividend payments and high risk. Suitable for investors seeking passive exposure to Chinese equities who believe in long-term market recovery.

9. SCBCEHP - SCB China Equity Hedged RMF

Year-to-date profits of 14.18%, though long-term returns remain negative with three-year annual returns of 3.30% and five-year returns of -3.03%. No dividend payments and high risk. Suitable for investors seeking capital appreciation from Chinese equities but prepared for volatility.

10. SCBCEH - SCB China Equity Hedged Fund

Year-to-date returns of 14.16%, indicating strong short-term recovery. However, three-year and five-year returns of 3.26% and -3.07% respectively reflect ongoing market challenges. No dividend payments and high risk. Designed for investors who can handle long-term volatility with a focus on long-term growth.

Conclusion

Most recommended Chinese funds operate primarily in money markets using passive investment strategies that track market indices. This approach provides an additional layer of risk protection for investors. These recommendations are for informational purposes only and not investment advice. Investors should conduct thorough research before investing, as international fund investments carry high risks.