Recently, more and more people are asking about how to buy Chinese stocks, and I’ve also taken some time to organize my thoughts.

Honestly, a year ago, many people were still pessimistic about the Chinese stock market, but after September last year, the situation completely reversed. Following that rare joint announcement by the central bank, the market began to show clear changes. By mid-year, the Shanghai Composite Index had rebounded nearly 50% from its lows, reaching a ten-year high. Behind this rally, the government has been actively guiding funds into the market, aiming to turn China's stock market into a wealth reserve platform similar to the U.S. stock market.

Before understanding how to buy Chinese stocks, you need to first understand the market structure. The mainland stock market mainly tracks five indices, with the CSI 300 being the primary reference for overseas investors, the SSE 50 representing large-cap stocks, and the CSI 1000 representing small-cap stocks. In terms of industries, finance and electronics are the main drivers, with pharmaceuticals, food, and chemical manufacturing also making up a large portion. The prosperity of these industries directly influences market trends.

The logic behind this bull market is also quite clear. Major institutions like Goldman Sachs and JPMorgan generally have a positive outlook, believing that corporate profitability is recovering and valuation systems are being readjusted. They forecast about 30% further upside in the coming years. Especially with AI technology, the "anti-involution" policies, and companies’ overseas expansion strategies, these factors support earnings growth per share. However, risks should also be acknowledged: the current rise is more driven by valuation expansion rather than fundamental improvement. If the economic recovery falls short of expectations, a correction could occur.

So, how can Taiwanese investors buy Chinese stocks? There are mainly two ways. One is through a cross-border entrusted trading account, such as Yuanta, KGI, or Fubon; the other is via overseas brokers like Futu or Tiger Brokers. When choosing, pay attention to the platform’s legality, ease of fund deposits, available trading products, and Chinese language support. Additionally, many high-quality mainland companies are listed in Hong Kong and the U.S., with Tencent and Alibaba being good options.

From an investment strategy perspective, here are some representative targets to consider. Cambrian is a leading AI chip designer with scarce technology; CATL is absolutely ahead in power batteries, with the energy transition trend confirmed; Ningbo Bank has unique governance advantages; Hengrui Medicine continues strong R&D capabilities; China Mobile offers stable cash flow and high dividends. Each of these companies has its own characteristics, suitable for investors with different risk preferences.

Overall, the answer to how to buy Chinese stocks lies in seizing current allocation opportunities. Corporate profits are improving, valuation space is available for recovery, and long-term allocation value is indeed rising. But remember, this market is volatile and policy-sensitive, so continuous attention to fundamental changes is necessary, and blindly chasing highs should be avoided.