Definition and Scope of China Concept Stocks

China concept stocks, commonly referred to as "China stocks," are shares of Chinese companies listed on stock exchanges outside Mainland China. While these companies are registered in China, their shares are primarily traded on international capital markets, such as those in the United States and Hong Kong. This classification encompasses a diverse range of industries, including internet, technology, consumer goods, and finance. Notably, the internet and technology sectors receive significant attention from investors, owing to their dynamic growth and global appeal.

What Are China Concept Stock ETFs?

China concept stock ETFs (Exchange-Traded Funds) are open-ended index funds designed to track the performance of China concept stocks. These ETFs are traded on stock exchanges, allowing investors to buy and sell shares in a manner similar to individual stocks. Typically, such ETFs are benchmarked against indices composed of multiple China concept stocks, such as the CSI Overseas China Internet 50 Index or the CSI Overseas China Internet 30 Index. Therefore, by investing in these ETFs, investors can efficiently achieve diversified exposure to a portfolio of China concept stocks without needing to purchase each stock individually.

Key Features of China Concept Stock ETFs

• China concept stock ETFs offer several advantages that make them attractive to global investors:Risk Diversification: By investing in an index comprising multiple companies, ETFs mitigate the risks associated with individual stocks.
• High Liquidity: As exchange-traded instruments, ETFs generally provide high liquidity, facilitating straightforward transactions.
• Cost Efficiency: Compared to purchasing multiple individual stocks, ETFs typically have lower management fees and transaction costs.
• Transparency: ETFs offer clear insights into their investment portfolios and operational methodologies, enabling investors to understand the underlying assets.
• Flexibility: ETFs are suitable for both short-term trading and long-term investment, as investors can easily adjust their positions based on market conditions.

In summary, China concept stock ETFs provide a convenient and effective avenue for global investors to access Chinese companies listed overseas.

Prominent Examples of China Concept Stock ETFs

（Source: uSMART HK）

These ETFs span a variety of industries, including internet, technology, consumer goods, and finance, offering investors a broad spectrum of choices. Therefore, when selecting China concept stock ETFs, investors should carefully evaluate factors such as their risk tolerance, investment objectives, market conditions, and associated fees and tracking errors.

How to Invest Using uSMART

After logging into the uSMART HK app, click on the "Search" option located at the top right of the page. Enter the stock code, such as " KWEB " to access the details page where you can review transaction details and historical trends. Then, click on the "Trade" option at the bottom right corner, select the "Buy/Sell" function, and finally fill in your transaction conditions before submitting your order.