FTSE China ETFs: Complete Guide to Indices, Fees & How to Choose

FTSE China ETFs provide access to a family of Chinese indices managed by FTSE Russell. Unlike a single index, “FTSE China” encompasses multiple benchmarks-the A50 (onshore, 50 largest A-shares), the China 50 (offshore Hong Kong-listed), the Greater China variants, and others. Each tracks different segments of the Chinese market with distinct sector tilts and accessibility mechanisms. Before choosing a fund, verify: (1) which FTSE index it tracks, (2) whether it’s A-shares (mainland), H-shares/P-chips (Hong Kong), or mixed, (3) the expense ratio and tracking difference, (4) liquidity and spreads on your exchange, and (5) currency and tax treatment.

Contents

1What Is “FTSE China”? (Index Family Basics)

2The China Market Map (So the Indices Make Sense)

3FTSE China A50 Index (The Most Common Case)

4Other Major FTSE China Indices You’ll See

5FTSE China vs MSCI China vs CSI 300 (High-Level Contrast)

6FTSE China ETF Universe (How to Verify and Compare)

7Fees That Matter (Beyond Expense Ratio)

8How to Choose the Right FTSE China Exposure (Framework)

9Risks and Constraints (Brief but Clear)

10FAQs

11Final Takeaway: 10 Rules of Thumb

12Disclaimer

5-Point Pre-Purchase Checklist:

Confirm the exact FTSE index name in the fund prospectus (not a generic “FTSE China”)
Check A-share vs offshore exposure and your investment objective alignment
Compare total expense ratio AND historical tracking difference (not just headline fee)
Verify bid-ask spread and daily trading volume on your listing (US/UCITS/HK/Asia)
Understand withholding tax treatment and currency risk for your investor status

What Is “FTSE China”? (Index Family Basics)

“FTSE China” is not one index. It’s a family of indices published by FTSE Russell, the benchmark arm of the London Stock Exchange Group. Just as the “S&P 500” family includes S&P 500, S&P 400 (mid-cap), and S&P 600 (small-cap), the FTSE China family includes the A50, China 50, China 30/18 Capped, Greater China All Cap, and numerous sub-variants organized by share class, region, market cap, and sector.

The FTSE China indices cover all publicly traded Chinese share classes: A-shares (mainland, RMB), B-shares (mainland, foreign currency), H-shares (Hong Kong, HKD), Red Chips (HK companies controlled by China), P-Chips (private Chinese companies listed in HK), S-chips (Singapore-listed), and N-shares (US-listed). This diversity is both FTSE Russell’s strength and the source of investor confusion-there is no single “FTSE China” to invest in.

Why multiple indices matter: A FTSE China A50 ETF and a FTSE China 50 ETF will move differently during market cycles. The A50 is heavy on domestic consumption and traditional financials; China 50 is heavy on offshore technology. An investor choosing by brand (“I want FTSE China exposure”) without reading the index name may accidentally misalign portfolio construction. The index choice precedes the ETF choice.

The China Market Map (So the Indices Make Sense)

To understand why FTSE publishes different China indices, you must understand China’s capital markets structure:

A-shares are issued by companies incorporated in mainland China and trade on the Shanghai Stock Exchange (SSE) or Shenzhen Stock Exchange (SZSE) in Chinese renminbi (RMB). Historically, they were accessible only to Chinese domestic investors and institutions holding Qualified Institutional Investor (QII) or QDII licenses. Since 2014, the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect schemes have permitted non-residents to buy A-shares in quota-limited amounts. This created a hybrid: A-shares are now “onshore” but increasingly accessible to international capital.

H-shares are issued by Chinese companies but incorporated and listed in Hong Kong under Hong Kong regulations, trading in Hong Kong Dollars. They are subject to HK market infrastructure and are more freely tradable by foreign investors than A-shares. Major banks, energy firms, and state-owned enterprises frequently have H-share listings.

Red Chips are companies incorporated in Hong Kong but controlled by mainland Chinese entities (typically state-owned). P-Chips are private Chinese companies incorporated abroad (usually in the Cayman Islands) that list in Hong Kong. Both trade in HKD and are freely available to international investors. P-Chips include the majority of China’s tech giants-Alibaba, Tencent, Baidu, JD.com, NetEase-because Chinese law restricts foreign ownership of internet/content companies; Chinese entrepreneurs incorporated these firms offshore to access foreign capital.

S-chips list in Singapore (SGD), and N-shares list in the US (primarily on Nasdaq and NYSE, USD). These represent mature-market listings by Chinese companies seeking US public capital market access.

The key distinction:

Onshore access (A-shares) = direct exposure to mainland consumption and industrial economy but subject to capital controls, foreign ownership caps, and stock connect quotas
Offshore access (H-shares, P-chips, HK-listed) = more freely traded, more mature market infrastructure, but skews toward sectors where foreign ownership is permitted (tech, finance, resources) and excludes domestic consumption staples not listed offshore
Neither replaces the other. A Chinese multinational consumer goods company may only issue A-shares. A Chinese tech firm may only have P-chip listings. An investor seeking “China exposure” must choose which market structure aligns with their objectives.

FTSE China A50 Index (The Most Common Case)

The FTSE China A50 Index tracks the 50 largest, most liquid A-share companies listed on the Shanghai and Shenzhen Stock Exchanges. It is the flagship FTSE China benchmark and the most popular FTSE China index among international investors seeking mainland exposure.

Selection Methodology:
The index draws from the FTSE China A All Cap Index (a much larger universe of A-shares). From this pool, FTSE Russell ranks all companies by full market capitalization and selects the largest 50 that meet liquidity and investability thresholds. Liquidity is assessed by reviewing each security’s monthly median daily trading volume to ensure the index is tradable. Investability criteria include free-float adjustment (accounting for state ownership and strategic holdings that are not freely available to foreign investors) and treatment of foreign ownership limits, which restrict how much of a company non-residents can own. The index uses a buffer zone-a company ranked 51st or 52nd may still be included if its market cap is near the cutoff, reducing unnecessary turnover. The index rebalances quarterly (third Friday of the review month).

Weighting:
Each company’s weight is determined by its free-float adjusted market capitalization. The higher a company’s market value and public float, the greater its influence on index returns. This is market-cap weighting, the most common approach for equity indices globally.

Why It’s Popular:
The FTSE China A50 is the most transparent, rules-based benchmark for tracking mainland China’s largest companies. It has deep ETF coverage across multiple regions (Hong Kong, Singapore, US UCITS, Australia) and significant assets under management, making ETFs very liquid. Index constituents are familiar to investors (the “household names” of Chinese business).

Key Limitations:

Concentration Risk: The top 10 holdings represent roughly 47% of the index weight (as of March 2023). Kweichow Moutai, a baijiu distiller, alone held 14.7%. This means index performance is heavily influenced by a small number of stocks. If Moutai or Contemporary Amperex Technology (second-largest, batteries/auto parts) declines sharply, the index declines disproportionately. A truly diversified portfolio would reduce this risk.
Sector Skew: The index has undergone significant reallocation over the past decade. Financial companies have fallen from 67% (2014) to under 27% (2023) as China’s economy shifted to consumption. Consumer staples (especially baijiu distillers) and battery/EV companies have surged. If your investment thesis requires exposure to China’s financial sector or traditional state-owned enterprises, the A50’s current construction may not align.
Onshore Access Constraints: A-share access is limited by the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect quotas. If these quotas become fully saturated (political tensions, capital controls tightening), foreign investors may face delays purchasing or redeeming A-share ETFs. This is distinct from the index composition risk-it’s a market access risk.
Domestic Consumption Tilt: The A50 over-represents companies that generate revenue primarily from domestic Chinese consumption (consumer goods, real estate, local financial services). If you believe China’s future growth comes from exporters or companies with global supply chains, the A50 may underweight those opportunities.

Other Major FTSE China Indices You’ll See

FTSE China 50 Index

This index tracks the 50 largest Chinese companies listed in Hong Kong as P-Chips, H-shares, and Red Chips. It contains zero A-shares. The constituents are selected and weighted using a similar market-cap methodology to the A50, but with a weight capping mechanism to prevent any single holding from exceeding the index concentration limit. This index is fundamentally different from the A50: it captures China’s offshore, globally-traded large caps. The top 10 constituents (Alibaba, Tencent, Meituan, JD.com, Baidu, NetEase) are predominantly technology and consumer discretionary firms that were born in the internet era and incorporated offshore to access foreign capital.

The FTSE China 50 has experienced dramatic sector shifts as well. In 2008, non-renewable energy (primarily PetroChina, China National Offshore Oil Corporation) represented 23.5% of the index. By 2023, that exposure had collapsed to below 5%, reflecting both deleveraging and the global energy transition. Consumer discretionary and technology exposure has grown. If your thesis emphasizes China’s tech and internet economy-Tencent’s fintech, Alibaba’s e-commerce dominance, Baidu’s AI push-the China 50 offers direct exposure that the A50 does not.

The main trade-off: you sacrifice exposure to domestic consumption staples (baijiu distillers, dairy, consumer appliances) that only trade as A-shares, and you accept currency and market infrastructure risks of Hong Kong (though these are minimal for a developed exchange).

FTSE China 30/18 Capped Index

This index combines multiple Chinese share classes-A-shares, B-shares, H-shares, Red Chips, P-chips, S-chips, and N-shares-into a single broad-market benchmark. It includes both large-cap and mid-cap companies. The “30/18” refers to the weight capping structure: the largest company is capped at 30%, and any remaining company is capped at 18%. This structure exists to comply with UCITS (Undertakings for Collective Investment in Transferable Securities), a European Union regulation that limits fund concentration and protects retail investors from over-exposure to single holdings. The index rebalances quarterly.

The FTSE China 30/18 Capped is useful for UCITS-regulated ETFs domiciled in Ireland, Luxembourg, or other EU member states that seek to track a diversified “all of China” benchmark. The capping reduces concentration risk compared to the A50 but also reduces the weighting of the absolute largest companies, which may reduce index efficiency (a dollar in Alibaba might be worth more in returns than a dollar in a mid-cap tech firm). UCITS ETFs tracking this index are typically available to European retail investors.

FTSE Greater China Indices

FTSE Russell publishes a family of “Greater China” indices that extend beyond mainland China to include Hong Kong and Taiwan. The FTSE Greater China All Cap Index combines: the FTSE China All Cap Index (mainland A-shares, B-shares, H-shares, P-chips, Red chips, S-chips, N-shares), the FTSE Hong Kong All Cap Index, and the FTSE Taiwan All Cap Index. This benchmark captures the entire East Asian ecosystem under the Chinese cultural and economic sphere-roughly 1.5+ billion people, spanning multiple currencies (RMB, HKD, TWD, USD), and regulatory regimes. For investors with a macro thesis that Taiwan’s semiconductors and Hong Kong’s finance are integral to “China growth,” the Greater China index provides a single exposure.

Practical note: Greater China indices are less common in ETF form than A50 or China 50 indices. They are more frequently used as reference indices by asset managers building custom solutions rather than as target benchmarks for mass-market ETFs. If you cannot find a liquid Greater China ETF on your exchange, you can replicate Greater China exposure by combining an A-share ETF, an offshore China ETF, and a Taiwan ETF.

FTSE China vs MSCI China vs CSI 300 (High-Level Contrast)

Investors often encounter three major Chinese index families and must choose between them. Understanding the material differences is crucial.

FTSE China A50 tracks 50 largest A-shares. It is simple, transparent, and highly concentrated. Approximately 47% of the index is the top 10 holdings. The index is heavy on consumption, baijiu, batteries, and some traditional finance. It is the pure-play onshore mainland benchmark.

MSCI China is far broader. As of 2025, it includes 443+ China A-shares, plus B-shares, H-shares, P-chips, Red Chips, S-chips, N-shares, and ADRs (American Depository Receipts of Chinese companies). MSCI’s selection criteria differ from FTSE: they exclude very illiquid securities, apply their own free-float methodology, and weight constituent countries within regions. Crucially, MSCI China has only 53% overlap with the CSI 300 (China Securities Index Company’s benchmark). MSCI China includes substantial mid-cap exposure (after November 2019 inclusions), whereas the CSI 300 is limited to large-cap A-shares. For sector exposure, MSCI China has lower financials weight and higher technology/healthcare weight than the FTSE A50, reflecting its broader universe.

CSI 300 is the 300 largest and most liquid A-share companies, designed originally for Chinese domestic investors. It is comprehensive for large-cap A-share exposure but contains no offshore listings. The CSI 300 and FTSE A50 have significant overlap at the top end-the largest 50 A-shares are largely the same in both indices-but the CSI 300 extends much deeper into mid-caps that the A50 excludes.

When these benchmarks differ materially:

In a tech boom where offshore P-chip stocks (Alibaba, Tencent) outperform onshore state-owned enterprises, MSCI China will outperform the FTSE A50.
In a consumption cycle where domestic brands (baijiu distillers, appliance makers) rally and offshore tech faces regulatory headwinds, the FTSE A50 will outperform MSCI China.
In a mid-cap rally (e.g., innovative pharma, emerging EV makers), the CSI 300 will capture more of the upside than the FTSE A50 (which is top-50 only).
In a liquidity crisis, the FTSE A50 (most liquid, most actively traded) may hold up better than broader, more illiquid indices.

Selection criteria summary:

FTSE A50: simplicity, direct onshore exposure, high liquidity, concentrated risk
MSCI China: breadth, inclusion of offshore names, institutional adoption (massive AUM tracks MSCI), mid-cap access
CSI 300: completeness for onshore A-share market, mid-cap depth, lower offshore financial linkages

FTSE China ETF Universe (How to Verify and Compare)

Below is a template table of major FTSE China ETF products. Note: this is a snapshot as of February 2026. ETF fees change, funds launch and close, and AUM fluctuates. Always verify current data via the fund issuer’s factsheet before investing. The table demonstrates the structure you should examine; specific figures must be sourced from official sources.

Fund Name	Listing Region	Index Tracked	Expense Ratio*	Exposure Type	Best For
iShares FTSE China A50 ETF (2823)	Hong Kong	FTSE China A50	TBD, verify	A-shares onshore	Direct HK market access, CNH/HKD settlement
VanEck FTSE China A50 ETF (CETF)	Australia	FTSE China A50 Net Tax AUD	0.60%	A-shares onshore	Australian investors, AUD currency
iShares China Large Cap UCITS ETF (A0DK6Z)	Ireland (UCITS)	FTSE China 50	0.74%	Offshore (HK-listed)	European retail, offshore tech exposure
Xtrackers FTSE China 50 UCITS ETF (HD8)	Singapore (UCITS)	FTSE China 50 (transitioning to MSCI China A)	0.60%	Offshore (HK-listed), transitioning	Asia-Pacific access, switching to broader index
Franklin FTSE China UCITS ETF (IE00BHZRR147)	Ireland (UCITS)	FTSE China (broad medium/large-cap)	TBD, verify	Mixed (A, H, P, Red Chips)	European investors seeking diversified China
iShares China Large-Cap ETF (FXI)	United States	FTSE China 50 variant	TBD, verify	Offshore (HK-listed)	US investors seeking Hong Kong-listed exposure
UOBAM FTSE China A50 Index ETF (JK8)	Singapore	FTSE China A50	TBD, verify	A-shares onshore	Singapore market access, SGD settlement
Bosera FTSE China A50 ETF	Hong Kong	FTSE China A50	Capped at 3.0% ongoing	A-shares onshore	HK market, cost-conscious

*Expense ratios shown are historical/recent data. Always check the fund’s current prospectus or Key Facts Statement.

How to confirm index, fees, and exposure in a factsheet:

Index Name (Exact): The prospectus must state the precise FTSE index name, e.g., “FTSE China A50 Index” not “China A50” or “FTSE China.” This prevents accidental mismatches (A50 vs China 50 vs 30/18 Capped).
Expense Ratio / Total Expense Ratio (TER): This is the annual cost as a percentage of assets. A 0.60% TER means 60 basis points (bps) per year. This is the most visible fee but not the whole cost story.
Tracking Difference / Tracking Error: The factsheet should disclose how the ETF’s returns have differed from the index over a trailing period (1 year, 3 years). Positive tracking difference is rare and usually temporary (boosted by securities lending). Negative tracking difference of -0.30% to -0.60% is typical after accounting for fees and costs. Compare ETFs with similar expense ratios to see which tracks most efficiently.
Share Classes and Currencies: A fund may offer multiple share classes in different currencies (HKD, CNH, USD, AUD, EUR). The underlying index returns are the same, but currency movements will differ. Verify the currency that settles in your account.
Withholding Tax Treatment: The factsheet should specify whether the ETF distributes gross or net dividends. “Net” means dividends have been subject to the maximum withholding tax rate for non-residents (typically 10% for Hong Kong stocks, varying for A-shares based on treaty). This is especially important for non-EU investors considering UCITS funds domiciled in Ireland, where net-tax treatment may apply.
Liquidity Metrics: Check the bid-ask spread (the difference between buying and selling prices) and average daily volume on your chosen listing. A spread of 0.05–0.15% is typical for liquid ETFs; spreads above 0.50% suggest lower liquidity, and you may lose more to slippage than you save on fees.

Fees That Matter (Beyond Expense Ratio)

The headline expense ratio is only one component of total cost.

Bid-Ask Spread:
When you buy or sell an ETF, you pay the “ask” (higher) and receive the “bid” (lower). The difference is the spread. For liquid FTSE China A-share ETFs trading in Hong Kong, spreads are typically 0.05–0.10% of the mid-price. For less liquid regional UCITS variants in Europe, spreads may widen to 0.30–0.50% in times of market stress. On a $100,000 position, a 0.15% spread costs $150 in immediate slippage. This is a one-time cost at entry and exit, not annualized, but it compounds if you trade frequently.

Tracking Difference vs Tracking Error:
Tracking difference is the actual performance gap between the ETF and the index. If the index returns 10% and the ETF returns 9.7%, the tracking difference is -0.30%. This is what you experience as an investor. Tracking difference is driven by the expense ratio (a -0.60% TER typically produces a -0.60% tracking difference), trading costs incurred during rebalancing (when the index constituent list changes), cash drag (the fund holds a small cash buffer to meet redemptions, which underperforms in rising markets), and operational inefficiencies.

Tracking error is the volatility of that difference-how stable the tracking is day-to-day. An ETF might lag the index by a steady -0.30% every month (low tracking error, very predictable). Another might lag -0.25% one month, then outperform by +0.10% the next (higher tracking error, less predictable). For passive buy-and-hold investors, tracking difference matters far more than tracking error. For an investor rebalancing quarterly, predictable tracking is valuable.

Historical Example:
The iShares FTSE China A50 ETF listed in Hong Kong reported: benchmark return 16.89% (2025), ETF return 16.44%, tracking difference -0.45%. The fund’s stated expense ratio is near 0.40–0.50%, so the -0.45% difference reflects the fee plus minor trading/administrative costs. This is efficient tracking.

Securities Lending:
Some ETF managers lend out securities to short-sellers to earn a rebate, which can offset a small portion of the expense ratio and slightly improve tracking difference. This is beneficial to investors but introduces counterparty risk (if the borrower defaults on returning the security). FTSE China A50 ETFs in Hong Kong and Asia typically engage in modest securities lending; UCITS-regulated funds have strict rules on how much rebate can reduce the TER. Ask your fund provider if they lend securities and how rebates are allocated.

Tax and Withholding:
China and Hong Kong both impose dividend withholding taxes. The rate depends on your country of residence and tax treaties. A US citizen holding a Hong Kong-listed FTSE China ETF may be subject to a 10% Hong Kong withholding tax on dividends. A German resident holding a UCITS-regulated FTSE China fund may benefit from EU directives reducing withholding to 15% (or lower under bilateral treaties). The prospectus should disclose the net tax treatment; if it doesn’t, contact the fund provider’s tax team. Over decades, 0.5–1.0% annual tax drag can accumulate.

How to Choose the Right FTSE China Exposure (Framework)

This is a decision tree. Start with your investment objective, then work down.

If you want onshore A-share exposure:

Choose a FTSE China A50 ETF
Venues: Hong Kong (e.g., 2823 iShares), Singapore (e.g., JK8), Australia (CETF), or UCITS in Ireland (if available)
Consideration: A-share access is via Shanghai/Shenzhen Stock Connect quotas; these are rarely saturated but can tighten in times of political tension or capital control tightening
Currency: Choose a share class matching your settlement currency (HKD, CNH, SGD, AUD, USD, EUR)
Rationale: Direct exposure to China’s domestic consumption economy, baijiu distillers, EV battery makers, renewable energy, healthcare

If you want offshore large-cap exposure:

Choose a FTSE China 50 ETF
Venues: Ireland UCITS (e.g., A0DK6Z iShares), Singapore (e.g., HD8 Xtrackers), or US (e.g., FXI)
Consideration: These are Hong Kong-listed companies (P-chips, H-shares, Red Chips), which are more liquid and globally arbitraged
Rationale: Direct exposure to tech (Alibaba, Tencent, Baidu, JD.com, NetEase), which drives China’s growth narrative globally; lower regulatory risk than A-shares; mature market infrastructure

If you want broader China + HK/Taiwan exposure:

Choose a FTSE Greater China or FTSE China 30/18 Capped ETF
Venues: Primarily UCITS in Ireland/EU
Rationale: Macro thesis that Taiwan’s semiconductor/HK’s finance/mainland’s consumption are integral to a single “China” growth story
Consideration: Lower concentration risk than A50 or China 50, but less pure-play; more complexity and lower liquidity

If you want simplest long-term allocation:

Start with a choice between FTSE China A50 OR FTSE China 50 (not both, unless overweighting China)
Combine with a global index ETF (S&P 500, MSCI World, etc.) to avoid over-concentrating in China
Use a single-share-class A50 or China 50 ETF (no currency hedging, lower complexity)
Annual rebalance only, do not trade around short-term volatility
Rationale: Fewer moving parts, lower fees (no hedging costs), disciplined long-term investing

If you’re unsure between A50 and China 50:

A50 = onshore consumption + traditional finance + domestic growth, domestic-facing economy
China 50 = offshore tech + export-facing + global capital linkages + geopolitical risk
Neither is “better”-they are complementary
If forced to choose one: A50 for domestic consumption/macro China play; China 50 for global tech and “New China” narrative
If you can hold both: allocate 50/50 or 60/40 depending on your conviction on onshore vs offshore outperformance

Risks and Constraints (Brief but Clear)

Market Access Risk:
A-share access relies on the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect schemes. In extreme geopolitical scenarios (e.g., major tensions over Taiwan, severe sanctions), these quotas could be suspended or frozen, preventing foreign investors from buying or redeeming A-share ETFs. This is not a default risk (the shares you own don’t disappear), but a liquidity risk. If you cannot redeem your ETF, you are locked in temporarily. This risk is low in normal times but non-zero.

Concentration Risk:
The FTSE China A50’s top 10 holdings represent ~47% of the index. This means 2–3 companies drive much of the index’s performance. If Kweichow Moutai (a liquor distiller) experiences a regulatory crackdown or demand collapse, the index declines sharply. This is an idiosyncratic risk that you assume by investing in a narrow index. The FTSE China 50 and broader indices (CSI 300, MSCI China) spread risk more widely.

Regulatory and Geopolitical Headline Risk:
China’s government has shown a willingness to rapidly introduce regulations that affect stock performance: e.g., 2020–2021 crackdowns on fintech (Ant Group, Alibaba), education (New Oriental, TAL Education), and online content (Tencent, NetEase). These were not foreseeable by index methodologies and resulted in sharp declines. Index investors cannot avoid this risk short of avoiding China entirely. The point is that “China equity” carries regulatory headline risk distinct from developed markets. Diversify globally to reduce concentration.

Currency Risk:
A-shares are denominated in Chinese renminbi (RMB), which is managed by the Chinese government and not freely convertible. The RMB has gradually depreciated against the US dollar and euro over the past decade but with periods of appreciation. If you are a US dollar investor and the RMB weakens 10% relative to the dollar, your FTSE China A50 ETF returns are reduced by ~10% in dollar terms, even if the index itself was flat. Hong Kong-listed ETFs (China 50) use HKD, which is formally pegged to the USD (1 HKD ≈ 0.128 USD), reducing currency risk for US dollar investors.

Liquidity Constraints During Market Stress:
FTSE China A50 ETFs trade on multiple exchanges. The HK-listed version (2823) is the most liquid. Singapore and Australian listings are much less liquid. In a market crash, bid-ask spreads on regional variants can widen 5–10x, and you may face delays in redemption. In normal times, this is not a concern. If you must sell into a market crash, the venue and liquidity matter significantly. Stick with the primary listing (Hong Kong for A50 ETFs) if tight execution is important.

Concentration in Single Sector / Single Company:
Kweichow Moutai, a baijiu (strong liquor) producer, comprises 14.67% of the FTSE China A50 as of early 2023. This is unusual for a broad-market index. It reflects the very high market value of Moutai relative to other A-shares. A-share valuation multiples (price-to-earnings ratios) are often lower than developed markets, making the largest companies disproportionately valuable. For some investors, this is acceptable; for others seeking a more balanced exposure, it’s a reason to consider the CSI 300 (more companies, lower Moutai weight) or MSCI China (offshore diversification).

FAQs

What is FTSE China?

FTSE China is a family of equity indices published by FTSE Russell, the benchmark arm of the London Stock Exchange Group. Unlike a single index, FTSE China comprises multiple indices: A50 (50 largest A-shares from mainland exchanges), China 50 (50 largest Hong Kong-listed Chinese companies), Greater China (mainland, Hong Kong, Taiwan), and several others. Each index follows rules-based methodology to select and weight constituents. FTSE China indices are used as reference benchmarks by ETF providers, asset managers, and derivatives markets (e.g., FTSE China A50 futures trade on the Singapore Exchange and CBOT).

Is the FTSE China A50 a good investment?

“Good” depends on your objectives and risk tolerance. The FTSE China A50 is a transparent, liquid, rules-based benchmark for onshore mainland China’s largest companies. It offers direct exposure to China’s consumption economy (baijiu, EV batteries, renewable energy, healthcare) without relying on offshore corporate structures or political agreements. However, it is highly concentrated (top 10 holdings ~47%), subject to regulatory headlines, has currency risk (RMB), and relies on Stock Connect quotas for foreign access. The A50 is appropriate for an investor who believes mainland China’s domestic economy will outperform over a 10+ year horizon and can tolerate 2–3 years of drawdowns during political tensions or regulatory crackdowns. It is not appropriate for investors seeking diversified exposure, those uncomfortable with Chinese regulatory risk, or those without a multi-year investment horizon. No index is “good” or “bad” in absolute terms-fit to your portfolio and objectives determines suitability.

What is the best performing Chinese ETF?

Past performance is not a reliable indicator of future returns. Over the past 1 year, FTSE China A50 ETFs may outperform or underperform FTSE China 50 ETFs depending on onshore vs offshore momentum, regulatory cycles, and currency movements. Over the past 3 years, MSCI China (which includes broader mid-cap and offshore listings) may have captured more growth in internet companies than FTSE China A50 (which is large-cap heavy). The question “which is best” is unanswerable without specifying timeframe and market conditions. Instead ask: “Which index aligns with my view of China’s growth drivers, and which ETF tracking that index has the lowest fees, best liquidity, and lowest tracking difference?” The “best” ETF is the one that aligns with your thesis and has efficient execution. Compare FTSE China A50 ETFs by tracking difference, not past performance.

What is the Chinese equivalent of FTSE?

The Chinese equivalent of FTSE Russell (as an index provider) is CSI (China Securities Index Company), which publishes China-specific indices including the CSI 300 (300 largest A-shares), CSI 500 (mid-cap), CSI 1000 (small-cap), and sector/thematic indices. CSI indices are used by Chinese domestic mutual funds, wealth managers, and derivatives markets. CSI 300 is roughly the “default” domestic benchmark for Chinese investors, just as the S&P 500 is for US investors.

FTSE Russell also publishes indices covering China for international investors. Both FTSE and CSI publish China indices, but FTSE Russell’s indices are oriented toward foreign investor accessibility, while CSI’s indices are designed for domestic Chinese investors. They are not competitors-they serve different markets.

Final Takeaway: 10 Rules of Thumb

Index first, ETF second: Choose the index (A50 vs China 50 vs broader) that matches your investment thesis before comparing ETFs. The index choice is more important than the fund choice.
“FTSE China” is a family, not a single index: Always verify the exact index name. A50, China 50, and 30/18 Capped are fundamentally different exposures.
A50 = onshore consumption; China 50 = offshore tech: Understand the key differences and choose accordingly. Do not assume one is “better”-they are complementary.
Fees matter, but tracking difference matters more: Compare historical tracking difference (how much the ETF lagged the index), not just the headline expense ratio. A 0.60% TER fund that tracks perfectly may be better value than a 0.40% TER fund that lags by 0.50%.
Liquidity varies dramatically by listing venue: A Hong Kong-listed A50 ETF is far more liquid than the same fund listed in Singapore or Australia. If execution speed or tight spreads matter, stick with the primary listing.
Currency risk is real: A-share ETFs expose you to RMB currency risk. Hong Kong-listed offshore ETFs use HKD, which is pegged to USD. Choose the currency that matches your base currency to minimize FX drag.
Concentration risk in the A50 is higher than other indices: Kweichow Moutai alone is 14%+ of the A50. If you’re uncomfortable with single-company concentration, consider CSI 300 or MSCI China.
Regulatory headlines can hit hard and fast: China’s government has repeatedly introduced regulations that crashed stock prices (fintech, education, content, EV subsidies). Index investors cannot avoid this; diversify globally to reduce single-country risk.
Don’t confuse liquidity with free float: An index can be “liquid” (high daily trading volume) but still have restricted free float (state ownership, foreign ownership caps). FTSE Russell accounts for this in free-float adjustments, but understand that A-shares are not as freely traded as US stocks.
Rebalance annually, not daily: FTSE China indices rebalance quarterly. ETFs tracking them rebalance in lockstep. If you also rebalance monthly or weekly, you’re fighting your own fund and losing money to spreads and taxes. Set a once-yearly rebalance rule and stick to it.

Disclaimer

This article is educational and does not constitute investment advice. FTSE China ETFs carry equity market risk, emerging market risk, currency risk, regulatory risk, and geopolitical risk. Past performance is not a guarantee of future results. Indices cannot be invested in directly; returns of indices shown are hypothetical. Investors should assess their risk tolerance, investment horizon, and financial objectives before investing. Consult a licensed financial adviser. All information is provided as of February 2026 and may be outdated. Fees, holdings, and exchange listings change; always verify current data via fund prospectuses and LSEG/FTSE Russell official sources before investing.