Best China Stocks to Buy – Invest with 0% Commission

China is still one of the fastest-growing economies globally. As such, it makes sense that more and more UK investors are looking to buy Chinese stocks. After all, the FTSE 100 index is still worth less than it was 12 months ago.

In this guide, we explore the best China stocks to buy right now. Taking into account that not all UK brokers give you access to Chinese companies, we’ll also discuss the best share dealing platforms to consider.

Top China Stocks 2021

Here’s a breakdown of the top 10 China stocks to consider today.

  1. Tencent – Best China Stock in 2021 – Invest now
  2. Xinyi Solar – Best China Solar Stock – Invest now
  3. Bank of China – Best China Bank Stock – Invest now
  4. Meituan – Best China Growth Stock
  5. Kunlun Energy – Best China Penny Stock
  6. China Railway Construction – Best China Construction Stock
  7. Alibaba – Best China Internet Stock
  8. Melco Resorts & Entertainment – Best Cheap China Stock
  9. JD.com – Best E-Commerce China Stock
  10. iShares MSCI China ETF – Best China Fund (Almost 600 China Stocks)

Best China Stocks UK Reviewed

With China now home to the second-largest economy, there are thousands of stocks that you have at your disposal. This is great, as you can easily create a diverse portfolio of leading Chinese companies from the comfort of your home. However, do you need to ensure that you choose a suitable broker too – which we cover in more detail later.

For now, below you will find our list of the best China stocks to consider buying in 2021.

Note: Some of the biggest Chinese stocks are actually listed on exchanges in Hong Kong and the US – which actually makes it easier to invest from the UK. 

1. Tencent – Best China Stock in 2021 

Tencent Holdings is a Chinese technology company that was first launched in 1998. As a conglomerate, it is behind a diverse range of products and services. At the forefront of is these WeChat and QQ – which are the two biggest messaging portals in the Chinese domestic market.

It is also behind an online music service that is now home to 700 million users – 120 million of which are paying subscribers. Tencent Holdings is also involved in the video game industry. This includes subsidiaries linked to hugely popular titles like Clash of Clans and League of Legends.

tencent stock price

In terms of its shares, Tencent is listed on the Hong Kong Stock Exchange. This makes it super easy to invest from the UK, as several UK brokers give you access to this marketplace. When Tencent first went public in 2004, the shares were priced at just $0.81 HKD.

At the time of writing in January 2021, the same stocks are priced at over $596. This amounts to gains of over 70,000% in just 16 years. It is also important to note that Tencent Holdings stocks performed really well in 2020. The shares were priced at $385 in the 12 months prior to writing this article, so that’s gains of 45%.

2. Xinyi Solar – Best China Solar Stock 

There is often a misconception that China is yet to embrace the world of green solar energies. However, this couldn’t be further from the truth – there are plenty of China solar stocks that are active in the market. At the forefront of this is Xinyi Solar. As its name suggests, the firm is a global solar glass manufacturer.

It is involved in the entire end-to-end process of research and development, manufacturing, distribution, and after-sales support. Crucially, with a daily production capacity of 9,800 tons, Xinyi Solar is able to meet 35% of the world’s demand for solar glass production.

Xinyi Solar stock price

The recent success of the firm is fully evident in its stock price action. Listed on the Hong Kong Stock Exchange, Xinyi Solar first went public in 2014. You would have paid just $2.31 HKD back then. Although the stocks have been on a steady upward trajectory ever since it wasn’t until early 2020 when they really took off.

For example, you would have paid $4.71 per share in March 2020. As of January 2021, this top China stock is now priced at $20.65. This means that Xinyi Solar shareholders are looking at gains of over 330% in just over 9 months of trading. As an added bonus, Xinyi Solar is also yielding a small dividend at approximately 0.8%.

Your capital is at risk.

3. Bank of China – Best China Bank Stock 

If you’re looking to invest in the best China bank stocks, there are several options to consider. One such example is that of the Bank of China. The bank – which is a Chinese SOE (State Owned Enterprise), is one of the largest financial institutions globally. In the domestic arena, it is the second-biggest in terms of market capitalization.

Although Bank of China stocks has its primary listing in Shanghai, it also has a listing on the Hong Kong Stock Exchange. This means that you can easily buy this Chinese stock online in the UK.

Bank of China Stock Price

In terms of stock price performance, the shares have taken a slight tumble over the past couple of years. For example, you would have paid $3.61 HKD per share in January 2019. As of January 2021, the same shares are priced at $2.72.

This does, however, present a good buying opportunity, especially when you consider that the financial institution is owned by the Chinese state. For the shares to get back to $3.50-ish levels, this Chinese banking stock needs to climb a further 35%. As such, there’s plenty of upside on the table.

Your capital is at risk.

4. Meituan – Best China Growth Stock 

If you’re seeking larger financial returns and are prepared to take an additional amount of risk, you might be looking to add some China growth stocks to your portfolio. If so, look no further than Meituan. The firm is behind a range of ‘Groupon-style’ mobile apps that are now hugely popular in the Chinese consumer marketplace.

This mainly centers on discounts and vouchers that can be attained by simply opening an account with the respective app. For example, Meituan offers promotions on everything from hotels and restaurants to entertainment complexes and consumer goods. Either way, on each and every voucher that Meituan sells through its app, the firm will make a commission.

meituan stock price

Now, although this might not sound like the most innovative business model, it is important to remember the sheer size of the Chinese marketplace – most of which now have access to smartphone technology. In fact, in Q3 2020 alone, the number of paying Meituan users surpassed 476 billion. That’s an increase of 19 million users from the previous quarter

If you like the sound of this China growth stock, the shares are listed on the Hong Kong Stock Exchange. In terms of how the shares are performing, Meituan only went public in late 2018 and at an initial price of $72 HKD per stock. As of January 2021, the same stocks are worth over $330. That’s gains of more than 330% in just over two years.

Your capital is at risk.

5. Kunlun Energy – Best China Penny Stock 

China penny stocks offer huge upside potential. But, at the time, they are also fraught with risk. Nevertheless, if you’re looking to add some penny shares to your China portfolio, you might want to consider Kunlun Energy. As the name suggests, Kunlun is a Chinese energy company that specializes in oil and gas exploration.

The firm itself is owned by China National Petroleum Corporation – which is now one of the largest companies globally in terms of revenues. In the case of Kunlun, the shares are listed on the Hong Kong Stock Exchange. At the time of writing, you will pay just $7.23 per share – which amounts to approximately £0.68. As such, it firmly sits within the remit of a China penny stock.

Kunlun Energy stock price

Looking at the charts, Kunlun Energy shares were priced at just $2.90 in March 2020. This means that the stocks have since grown by almost 150% in less than a year. The shares were, however, worth in the region of $10 back in late 2018 – so this would be a good medium-term target.

Your capital is at risk.

6. China Railway Construction – Best China Construction Stock 

In searching for the best China construction stocks of 2021, we came across a potential undervalued company in the spare of China Railway Construction. Although the firm is a huge player in the railway industry, it is also involved in a range of other sectors.

This includes infrastructure construction, real estate development, financial trusts, and even scientific research. With a history that now spans over 120 years, China Railway Construction is behind some of the largest projects globally. This includes markets in Asia, the Middle East, Africa, and Europe.

China Railway Construction stock price

In terms of its shares, China Railway Construction stocks went public in 2008. It opted for a dual listing in both Shanghai and Hong Kong, with the latter opening up the doors for international investors. It should be noted that the stocks have had a tough time in 2020 – much like the rest of the construction industry.

For example, you would have paid almost $10 HKD per share for this China stock in March 2020. However, the same shares are priced at just $5 HKD in early 2020. This does mean that you can buy the stocks at a huge discount – should you like the overarching business model of China Railway Construction.

Your capital is at risk.

7. Alibaba – Best China Internet Stock 

Alibaba is one of the largest companies globally and in some ways – very comparable to Amazon. This is because the firm is behind a huge online e-commerce store that allows Chinese wholesales to connect with the Western world. But, and much like Amazon, Alibaba is so much more than just an online retailer.

On the contrary, it is behind a diverse range of services that in most cases – are performing very well. This includes everything from a movie production entity, financial payments, and even a cloud computing division that is looking to compete with AWS (Amazon Web Services).

alibaba stock price

On the other hand, it should be noted that there has been a lot of noise surrounding Alibaba in recent months. At the forefront of this is an investigation by the Chinese government regarding a potential breach of anti-monopoly laws. Additionally, hugely influential founder and CEO Jack Ma has not been in public for several months.

However, the most important thing to remember that the business fundamentals of Alibaba have never been stronger. Both revenues and operating margins are on the rise, and it is sitting on vast sums of cash reserves. As such, at current prices of $230-ish, Alibaba is potentially heavily undervalued.

Your capital is at risk.

8. Melco Resorts & Entertainment – Best Cheap China Stock  

Irrespective of the region, several industries, in particular, have been hit extremely hard by the covid pandemic. One such example is that of the hospitality industry – with restrictions in one, way, shape, or form still prevalent in most countries around the world. This brings us nicely to Melco Resorts & Entertainment – a cheap China stock that you might consider adding to your portfolio.

The company is a major casino and hotel operator with a huge presence in Macau. Naturally, casinos were closed for some time now in the region, meaning that Melco has burned through a lot of cash.

Melco Resorts & Entertainment stock price

In turn, its stocks took a huge hit in 2020. For example, the shares went from $24 in early 2020 to just $11 in the space of 8 weeks, representing a decline of more than 50%. Right now, the shares are floating around the $18 mark – meaning there has been a relatively promising recovery.

However, there is still a further upside of 33% required for this China stock to get back to pre-pandemic levels. As such, this means that you still have the chance to buy the shares at a huge discount. After all, casinos in Macau have since opened up to the lucrative Chinese marketplace – which contributes to the vast bulk of the region’s revenues.

Your capital is at risk.

9. JD.com – Best E-Commerce China Stock  

Much like Alibaba, JD.com is behind a huge e-commerce business model. However, unlike Alibaba, JD.com stocks and distributes products internally, as opposed to acting as a third-party middleman. This puts it in full control of the customer experience and the specific marketplaces that it wishes to target.

Additionally, JD.com is not embroiled in a messy investigation with authorities in Beijing regarding anti-monopoly laws. The firm is already home to over 800 warehouses throughout China – serving more than 30 major cities.

JD.com stock price

In a similar nature to Amazon, JD.com is placing a strong focus on innovative technologies to improve efficiency levels and ultimately – maximize margins. For example, the JD.com supply chain network benefits from driverless vehicles and automated warehouse robots.

If you like the sound of this Chinese e-commerce stock, the shares are listed on the Hong Kong Stock Exchange, as well as the NASDAQ in the United States. Either way, this Chinese stock has performed very well over the prior 12 months. Priced at just $32 in March 2020, JD.com shares will now cost you over $90 each. That’s a stock price increase of over 180% in less than a year.

Your capital is at risk.

10. iShares MSCI China ETF – Best China Fund  (Almost 600 China Stocks)

As you might have guessed, there are thousands of China stocks scattered on several exchanges around the world. In turn, this can make it very difficult to know which shares to add to your portfolio. The best solution in this respect is to invest in an ETF that tracks leading Chinese stocks.

For example, the iShares MSCI China ETF holds a basket of almost 600 China stocks from a diverse range of sectors and industries. This includes many of the best China stocks that we have discussed today – such as JD.com, Tencent, Meituan, and Alibaba.  However, it also contains hundreds of other Chinese stocks that you might not have previously considered.

iShares MSCI China ETF

This includes the likes of Ping Insurance, Pinduoduo, China Construction Bank, and many others The best thing about taking the ETF route is that you can invest in stocks from heaps of different Chinese companies through a single trade. Plus, the iShares MSCI China ETF has an annual expense ratio of 0.59% – which is very competitive.

Your capital is at risk.

How to Choose the Best China Stocks for You

The internet is jam-packed with so-called investment experts that will tell you which China stocks to buy in 2021. However, you should refrain from choosing stocks based on somebody else’s viewpoints. Instead, it’s wise to get in the habit of performing your own research so that you can be sure you are choosing the right stocks for you and your financial goals.

To help you along the way, below we list some of the considerations that you need to make when searching for the best China stocks to buy.

Understand the Basics of China Stocks

First and foremost – and much like any emerging market that you are planning to invest in, it’s really important that you understand the basics of the respective financial arena. In the case of China, some of the largest companies in the country are owned by the ‘state’, meaning that the government has an element of control over how the firm is run.

For example, while you can easily buy shares in the Bank of China – the financial institution is state-owned nonetheless. Additionally, we should also mention that the best China stocks are actually listed outside of the Chinese markets.

Best China stocks to buy now

As we have discussed on this page, Chinese companies often opt for the Hong Kong Stock Exchange, as well as the NASDAQ and NYSE in the US. The reason for this is simple. Investors from outside of China will find it very difficult to access the Shanghai Stock Exchange and Shenzhen Stock Exchange due to capital controls.

As a result, the best China stocks go with dual-listings – one of which will include an easy-to-access exchange found in the likes of Hong Kong or the US.

Regarding the latter, we should also note that Donald Trump was previously looking to ban US citizens from investing in certain Chinese stocks. Although this shouldn’t impact you as a UK investor, any US-led ban on Chinese companies can have a negative impact on the firm’s stock price.

Your Investment Won’t be in Pounds and Pence

Leading on from the section above, you also need to remember that the best China stocks will be priced in a currency other than the British pound. After all, rarely do Chinese companies opt for the London Stock Exchange when considering a dual listing. As we have discussed, the NASDAQ, NYSE, or Hong Kong Stock Exchange is usually preferred.

This means that the best China stocks to buy now are typically priced in US dollars or Hong Kong dollars. Additionally, this also means that you need to take into account the exchange rate between the pound and the respective currency. For example, if the value of the pound goes down from when you deposit funds into your chosen broker, this will have an impact on your potential gains.

Diversify Into Several China Stock Sector

Much like any other financial market, you can buy China stocks from virtually every sector imaginable. This is great news for you an investor, as it ensures that you have the capacity to create a highly diversified portfolio.

For example, you might decide to buy some China stocks that operate in the e-commerce, construction, banking, retail, and energy sectors. In doing so, you won’t be overly exposed to a specific sector – meaning that you will be investing in a risk-averse manner.

Add Some Cheap China Stocks to Your Portfolio

The coronavirus pandemic has hit several Chinese sectors particularly hard. While this isn’t good news for those already in possession of such stocks, this does give new investors an opportunity to some China stocks at a discount.

Cheap China stocks at eToro

As we mentioned earlier, Melco Resorts & Entertainment potentially undervalued, as most of its casinos and hotels were shut for several months. But, Melco isn’t the only cheap China stocks on the table.

As such, do some research to see if you can find a hidden gem that you believe will eventually bounce back to pre-pandemic levels.

Don’t put all of Your Eggs into One Basket

Although the Chinese stock markets continue to generate above-average returns for investors, you need to be careful not to overexpose yourself. After all, China might be the second-largest economy in terms of GDP – but is an emerging market nonetheless. As such, Chinese stocks can be a lot more volatile in comparison to exchanges based in the US and UK.

With this in mind, we would suggest considering other markets alongside China. If it’s Asian stocks in particular that you are interested in, why not also consider the likes of Thailand, Hong Kong, Indonesia, and India?

Much like China, these are also emerging marketplaces that are experienced huge growth. You might also consider adding other international stocks to your portfolio – such as those based in North America, Australia, or mainland Europe.

Consider Fractional China Stocks

An additional way that you can buy the best China stocks in a risk-averse manner is to use an online broker that offers ‘fractional shares’. This means that you don’t need to buy a full Chinese stock. Rather, you can buy a ‘fraction’ of one share.

For example, FCA broker permits fractional ownership on over 2,400 stocks from $50 (about £40) upwards. This means that by making a modest deposit of $500 (about £400) – you could diversify into 10 different Chinese companies.

Best Stock Brokers to Buy China Stock

Not only do you need to think about which China stocks take your fancy, but you also need to find a suitable broker that gives you access to your chosen company(s). After all, very few share dealing sites in the UK allow you to buy China stocks online.

Even if you do come across a platform that offers the Chinese stock you are interested in, you still need to check things like fees and commissions, supported payment methods, and minimum account balances.

To point you in the right direction, below you will find two leading UK stock brokers and stock apps that offer markets on hundreds of the best China stocks to buy now.

1. eToro – Buy China Stocks with 0% Commission

eToro is now one of the largest online brokers globally – with more than 17 million client accounts under its belt. It has a huge customer base in the UK – which is evident in its regular TV adverts and Premier League sponsorships. And of course, the broker is regulated by the FCA, and your funds are protected by the FSCS – so safety should be of no concern.

This ever-growing popularity of eToro in the UK is because of several key reasons. Firstly, the platform gives you access to over 2,400 stocks from 17 international markets. This means that you can buy heaps of leading China stocks from the comfort of your home. In fact, all of the 10 Chinese companies that we discussed on this page can be accessed at eToro.

China stocks eToro

Not only is eToro popular for its huge asset library, but it is also one of the cheapest stock brokers in the UK. This is because you can buy China stocks without paying a single penny in share dealing commission. There are no ongoing account fees either. And, if you decide to buy some UK stocks, you won’t be required to pay stamp duty – which is usually charged at 0.5%. Irrespective of which China stocks you decide to buy, eToro requires a minimum investment of just $50.

Many investors in the UK also like eToro for its Copy Trading tools. This allows you to select an experienced investor that you like the look of, and then copy their portfolio like-for-like. Opening a share dealing account at eToro is simple and fast. Crucially, you can instantly deposit funds with a UK debit/credit card or an e-wallet like Paypal, Skrill, and Neteller. As such, you can buy your favorite China stocks without needing to wait for a slow and cumbersome bank transfer to be processed.

Pros:

  • Super user-friendly online stockl trading platform
  • Buy stocks without paying any commission or share dealing charges
  • Trade CFDs in the form of stocks, indices, commodities, forex, and more
  • 2,400+ stocks listed on the UK and international markets
  • 150+ ETFs
  • Deposit funds with a debit/credit card, e-wallet, or UK bank account
  • Ability to copy the trades of other users
  • FCA and FSCS protections

Cons:

  • Not suitable for advanced traders that like to perform technical analysis

67% of retail investors lose money trading CFDs at this site

2. DEGIRO – Great Low-Cost Broker With Thousands of China Stocks

Degiro is another online brokerage site that is worth considering. One of the main attractions of this provider is the sheer size of its stock library. This includes tens of thousands of stocks across heaps of different marketplaces. Once again, all of the China stocks listed on this page can be accessed at Degiro at the click of a button.

When it comes to fees, Degiro isn’t as competitive as eToro – as it isn’t commission-free. Instead, you will pay a fee of €10.00 + 0.06% on each China stock that you buy. You will need to pay this fee again when you cash your stocks out. Additionally, you also need to pay an annual fee of €2.50 for each exchange that you buy shares from. For example, if you buy shares from companies active in Hong Kong and Japan, that’s €5 for the year.

If you’re interested in other Asian markets, Degiro also covers Japan, Singapore, and more. The trading platform is also home to a significant number of index funds and ETFs – many of which target the best China stocks. When it comes to opening an account at Degiro, this can take several days as you need to transfer funds from your UK bank account as part of the verification process. There is no minimum deposit though, so you can start off with small amounts.

Pros:

  • Very low fees to buy and sell stocks
  • Thousands of stocks across multiple international markets
  • One free ETF trade per month
  • Also offers bonds and funds
  • Good reputation
  • Newly designed website makes it easy to invest

Cons:

  • Takes days to get your account set up
  • Does not accept debit/credit cards or e-wallets

Investing at this trading platform involves risk of loss.

How to Invest in China Stocks From the UK

If you’re a complete newbie in the online trading space – or you’re a bit apprehensive about investing in China stocks for the first time – we are now going to walk you through the purchase process step-by-step.

Our guidelines will show you how to complete the process with eToro, as all of the best China stocks discussed on this page can be bought commission-free.

Step 1: Open an Account and Upload ID

Before you can buy China stocks at eToro, you will first need to open an account. This should take you no more than a few minutes, as you simply need to enter some personal information.

eToro sign up

eToro will also need you to choose a username and strong password, alongside your email address and mobile phone number.

Step 2: Confirm Identity

If you are planning to invest more than $2,250 (about £1,800) – you will need to upload some ID documents before you can proceed.

This includes the following:

  • Valid passport or driver’s license
  • Utility bill or bank account statement

If not, you can proceed to make a deposit. Take note, you need to complete the verification process before you can make a withdrawal.

Step 3: Deposit Funds

Now it’s time to make a deposit. You can choose from the following payment methods.

  • Debit cards
  • Credit cards
  • E-wallets
  • Bank transfer

Apart from a bank wire, all other payment methods are processed instantly.

Step 4: Search for a China Stock

Once you have made a deposit and the funds are showing in your eToro account – you can proceed to buy your chosen China stock. If you know which company you want to invest in, simply search for it.

buy China stocks at eToro

In our example, we are looking to buy stocks in Tencent.

Step 5: Buy China Stock

Once you have searched for a China stock and clicked on the ‘Trade’ button, you will then see an order box like the image below.

buy China stocks at eToro

Irrespective of which exchange the China stock is listed on, you need to enter your investment amount in US dollars. This only needs to meet a minimum of $50 – which is about £40.

To complete your commission-free stock investment at eToro, click on the ‘Open Trade’ button.

Conclusion

As the second-largest economy globally, interest in China stocks from the UK has never been stronger. While in previous timers investing in this emerging market was challenging, our guide has shown you that the end-to-end process can now be completed in minutes.

If opting for FCA-regulated broker eToro, you will have access to heaps of China stocks at 0% commission. The platform is simple to use – so it’s perfect for first-timers. Plus, you can instantly deposit funds with a UK debit/credit card or e-wallet, so all in – the process is super-convenient.

eToro – Buy China Stocks with 0% Commission

67% of retail investor accounts lose money when trading CFDs with this provider.

 

FAQs

How do you buy China stocks in the UK?

First and foremost, you need to find a UK broker that gives you access to China stocks. Then, it's just a case of opening an account, making a deposit, and choosing which stocks to buy. At eToro, the process takes less than 10 minutes and you can buy the best China stocks commission-free.

What fees are involved to buy China stocks in the UK?

Fees will ultimately depend on your chosen stock broker. In most cases, you will pay a standard share dealing commission - plus an international market surcharge. At eToro, you can buy China stocks without paying any commission.

What are the best China stocks to buy right now?

Some of the most popular China stocks with UK investors include Tencent, Alibaba, and JD.com. However, there are thousands more to choose from, so make sure you perform lots of independent research.

Is there a China stock ETF?

Yes, there are many ETFs that track the Chinese stock markets. The iShares MSCI China ETF, for example, gives you access to almost 600 of the best China stocks.

What is the largest China stock market?

The largest stock exchange in China is that of the Shanghai Stock Exchange (A shares). However, accessing this exchanger from the UK can be difficult. This is why the best China stocks also opt for listings in Hong Kong and the US.

Kane Pepi

About Kane Pepi PRO INVESTOR

Kane Pepi is a British researcher and writer that specializes in finance, financial crime, and blockchain technology. Now based in Malta, Kane writes for a number of platforms in the online domain. In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner. Academically, Kane holds a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and he is currently engaged in a Doctorate Degree researching the money laundering threats of the blockchain economy. Kane is also behind peer-reviewed publications - which includes an in-depth study into the relationship between money laundering and UK bookmakers. You will also find Kane’s material at websites such as MoneyCheck, the Motley Fool, InsideBitcoins, Blockonomi, Learnbonds, and the Malta Association of Compliance Officers.

Questions & Answers (0)

Have a question? Our panel of experts willanswer your queries.Post your question