Foreign investors can reach Chinese equities four different ways, and the route you pick changes your account type, your currency exposure and your regulatory risk. Here is the plain-English comparison before you open anything.
| Channel | What you buy | Currency | Best for | Main trade-off |
|---|---|---|---|---|
| US ADRs | Shares of Chinese companies on NYSE/Nasdaq (BABA, JD, BIDU, NIO, PDD…) | USD | US investors wanting single-name exposure with zero setup | HFCAA/PCAOB delisting risk; limited to ~280 names |
| Hong Kong (HKEX) | H-shares & red chips (Tencent 0700, Meituan 3690, BYD 1211) and HK-listed ADR twins | HKD | Broadest direct access incl. firms with no US line | Needs a broker with HKEX access; time-zone |
| Stock Connect | Mainland A-shares (Kweichow Moutai 600519, CATL 300750) via HKEX routing | RMB/HKD | 2,000+ A-shares not available through ADRs | More setup; T+1 settlement; quota logic |
| China ETFs | Baskets tracking MSCI China, CSI 300, internet, tech (MCHI, FXI, KWEB, ASHR, CQQQ) | USD (US-listed) | Instant diversified exposure, no single-name risk | Less targeted; unhedged currency |
Most foreign investors mix channels: a core China ETF for diversification, a few ADRs or HK shares for conviction, and Stock Connect only when they specifically want A-shares.
The one risk that is unique to ADRs is delisting. Under the HFCAA, a Chinese company whose auditor is not inspectable by US regulators can be forced off US exchanges. Most large ADRs now carry a Hong Kong listing as a fallback, so the practical impact is often a ticker swap rather than a total loss — but it is a real operational risk the other three channels do not share. See the dedicated guide for how the conversion actually works.