2568 Which Chinese funds are the best to invest in? Here are 10 funds with promising prospects amid changing market conditions.

The Chinese economy remains a place to watch in 2025, despite short-term volatility. The long-term growth potential of the world’s second-largest economy still exists. For those interested in entering the Chinese market, Chinese funds are not the only option, but they are a safe and efficient channel. Let’s explore how to choose these Chinese funds and what options are available.

Understanding Chinese Funds and Their Types

Chinese funds are investments aimed at accessing the Chinese stock market, whether on the mainland, in special administrative regions, or even global markets. China is prominent in finance, technology, and e-commerce, which makes its market highly liquid.

Before making an investment decision, get to know the two main types:

Passive Fund (Index Fund) – Provides returns close to the stock index, with low fees. Suitable for beginners. Moderate to good risk.

Active Fund (Individual Stock Fund) – Higher risk, focusing on the manager’s skill to outperform the index.

10 Chinese Funds to Invest in 2025

Strong performance with good results over 3 years.

1: SCBCEE – One of the market favorites

Thai Commercial Bank Chinese Equity Open-End Fund via electronic channels, notable for a cumulative return since the beginning of the year of 11.37% and a 3-year average return of 6.88% per year. Although the 5-year return has been steady at 0.56%, it’s still positive.

This fund does not pay dividends. Suitable for buy-and-hold investors who can tolerate volatility well.

2: SCBCEP – A conservative choice

Since the beginning of the year, return is 10.83%, with a 3-year average of 5.94% per year. This is a more conservative version of SCBCEE, suitable for retirement planning and those comfortable with volatility.

3: SCBCE (SSF) – Tax benefits + returns

Since the beginning of the year, return is 10.92%, and over 3 years, 5.81% per year. An SSF (Retirement Savings Fund) investing in China. Long-term disciplined investors will benefit more.

Strong growth side with high current returns.

4-5: SCBCEHE and SCBCEH – Under pressure

Both have current returns of 14.63% and 14.16%, respectively, but their 5-year performance is negative (-2.09% and -3.07%). This indicates that the current recovery is just a rebound.

For experienced investors who believe in China’s recovery only.

6: TISCOCH – Deep potential

Current return is 14.18%, but 5-year return is down to -3.26%. It’s like betting on China’s recovery, but patience is needed.

7: TCHRMF – Aggressive retirement plan

Current return 13.89%, but long-term -3.16% per year. Suitable for those looking to save on taxes and prepare for a long decade.

8: KF-HSHARE-INDX – High-risk index approach

Current return 14.21%, tracking the index, but 3-year return is only 3.32% per year. Suitable for those confident in the strong comeback of the H-shares market.

9: SCBCEHP – RMF for ambitious investors

Current return 14.18%, combining RMF (Retirement Fund) with high risk. 3-year return is 3.30% per year.

10: SCBCE – The master of SCBCEE

Current return 10.91%, with a 3-year return of 5.81% per year. Another option from SCB that can be verified.

How to Make the Right Decision

Data indicates that recent returns are strong due to the domestic recovery, but most 5-year returns are negative, reflecting China’s long-term struggle.

Principles for choosing:

• If you fear volatility → SCBCEE or SCBCEP (Sustainable 5-7% annual returns)
• If you want high growth and can tolerate risk → TISCOCH or KF-HSHARE-INDX
• If you want tax savings → TCHRMF or SCBCEHP
• If you are a beginner → SCBCE (SSF) generally

Key Takeaways

Most Chinese funds presented are passive funds that offer returns close to the index, providing a balanced way to access the Chinese market.

Investing in foreign funds requires careful study of the prospectus and understanding your risk tolerance. All funds carry high risk and are not suitable for everyone.