My friend Lars from Berlin has lived in Shanghai for 3 years. He wanted to invest in Chinese A-shares. "The market is undervalued," he said. "I want in."
What he learned:
1. Foreigners CAN trade A-shares.
But you need a "qualified foreign individual investor" account. Not every brokerage offers this.
2. The process:
• Open a Chinese bank account (took him 2 weeks)
• Get a tax ID (he already had one from his job)
• Apply at a designated brokerage (he used Guotai Junan)
• Submit passport, residence permit, bank statements
• Wait 2 weeks for approval
3. The restrictions:
• Daily trading limits on some stocks
• Can't trade all stocks (some are restricted to domestic investors)
• Must report foreign tax residency (CRS compliance)
• Currency conversion limits apply
4. The surprise:
He could trade through the brokerage app in English. But customer service? All Chinese.
5. The bigger surprise:
He made 15% in his first month. Then lost 8% in his second. "Chinese stocks," he said, "are not for the faint of heart."
The easier route:
If you just want exposure to Chinese markets without the hassle:
• Stock Connect — trade A-shares through a Hong Kong broker (if you have a HK account)
• Chinese ETFs — available on US/European exchanges (MCHI, KWEB, etc.)
• Mutual funds — many global funds have China exposure
Lars eventually moved most of his money to ETFs. He kept a small A-share account "for fun."
Lars: "Opening the account was harder than analyzing the stocks. And the stocks were pretty hard."
Anyone else tried investing in China? What's your experience?
Posted on 2026-5-23 14:20:38