Many friends have asked me how to buy Chinese stocks and whether investing through funds is a good idea.

Here, I want to share my experience from monitoring the Chinese stock market.

Actually, Chinese equity funds are not new, but this year they have become an interesting option again.
Although the market is quite volatile, China is the second-largest economy in the world, and its long-term growth potential remains there.

Before talking about the actual funds, you need to understand how many types of Chinese stock investments via funds there are.
The first type is a Passive Fund or index fund, which provides returns close to the stock index.
It has moderate risk, low fees, and is suitable for beginners.
The second type is an Active Fund, which focuses on actively selecting stocks.
It carries higher risk but also offers the chance for better returns if the fund manager is skilled.

Speaking of how to buy Chinese stocks, investing through funds is actually easier than direct investment.
You don’t need to study each company; just choose a fund that matches your situation.

Let’s look at some real examples.
I gathered data from the Thai stock market, and found that SCBCEE has returned 11.37% since the beginning of the year.
Over the past 3 years, it has averaged 6.88% per year, but over 5 years, it’s only 0.56%, reflecting the market’s volatility in China.
This fund does not pay dividends, making it suitable for long-term investors who can accept risk.

Another interesting fund is SCBCEP, which has returned 10.83% since the start of the year.
Over 3 years, it’s about 5.94%, but over 5 years, it’s negative -0.33%.
This shows that the Chinese market has faced quite a few challenges recently.

For those interested in tax benefits, SCBCE (SSF) is an option.
It has returned 10.92% since the beginning of the year, and 5.81% over 3 years.
This is a savings fund that also helps you save on taxes.

For those seeking strong short-term returns, SCBCEHE has returned 14.63% since the start of the year, but over 5 years, it’s negative -2.09%.
This indicates high volatility, suitable for experienced investors.

Another 5 funds with good performance recently are: TISCOCH (14.18%), TCHRMF (13.89%), KF-HSHARE-INDX (14.21%), SCBCEHP (14.18%), and SCBCEH (14.16%).
All of these have returned around 13-14% since the beginning of the year.
However, over the long 5-year period, most are in negative territory, reflecting the challenges of the Chinese market in the mid-2020s.

Most of these funds do not pay dividends; they focus on capital growth through passive investing, which is a good way to manage risk for investors.

But what’s important is that the information I share is for educational purposes only.
It’s not an invitation to invest.
Investing in foreign funds carries high risks, so do your research carefully before making decisions.
And if you want to start investing in Chinese stocks, consider beginning with a low-fee passive fund.