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Beginner

How to: trade China

China - it’s the second largest economy in the world and has been the global economic powerhouse for decades. Accounting for nearly 18% of world total GDP, China has been playing an increasingly critical role in the world economy, especially in the post-pandemic period.

When it comes to the capital markets, China offers excellent alternative opportunities for traders to consider. Given the unlimited potential and the relatively low correlation between China assets and other major markets, exposure to China enables traders to diversify their portfolio and express a view on fluctuation in its economic trends and financial markets evolution.

Pepperstone’s Edge

While global investors can freely trade Chinese stocks and equity indices that are listed on overseas exchanges, trading mainland China’s A-shares, the RMB-denominated stocks in Shanghai and Shengzhen exchange are highly restricted for non-Chinese citizens at the moment. Pepperstone offers a unique edge in this space.

  1. Ease of access: With Pepperstone, however, we make it easier for you. Through our wide-range of China-related instruments, you are just a click away from adding China exposures into your portfolio.
  2. Autonomy of choice: Do you have a different view on China? No problem! You can express it by going long or short on China assets, and depending on your account type, with the leverage that best suits your strategy.

Available instruments to trade

You can trade a view on Chinese markets with instruments, including indices, ETF, individual shares and the Chinese Yuan. Or you can opt to trade products that have high correlation with Chinese markets such as the Aussie Dollar.

There are many options open to the trader, such as:

  • CN50: This index is derived from FTSE China A50 index, which is made up of the 50 largest Chinese companies listed in the Shanghai and Shenzhen Stock Exchanges. It provides you with easy access to mainland China’s equity markets.
  • HK50: Trading HK50, to some extent, is like trading China, just with less restrictions.
  • CHINAH: It is also known as Hang Seng China Enterprises Index or H-Share Index, which is made up of the largest 50 H-shares listed on Hong Kong Stock Exchange.
  • FXI: This also refers to iShares China Large-Cap ETF, which tracks the performance of an index that is composed of the largest 50 Chinese stocks on Hong Kong Stock Exchange. It is listed on New York Stock Exchange and is the most liquid Chinese stock ETF.
  • Individual Stocks: You can find some big names like Alibaba, Baidu and DiDi on our platforms. USDCNH: Yuan, or RMB, has become the fourth most active currency in global payments by 2021.
  • Indirect trading vehicles: Some commodities like copper and crude oil are highly correlated with China’s economic growth.

Increase your ability to capture opportunity - Put China on your watch list with Pepeprstone’s complete trading solutions.

Learn more about trading CFDS

Here at Pepperstone, our customers love the product range along with the low cost to trade and the fact so many markets are open around the clock. Interested? Watch the more videos to learn or speak to our team about whether CFDs are right for you.