Indian Investors See 53% Gains as China ETFs Rally; Check Out Top Funds Here!

After years of sluggish returns, China-focused mutual funds in India are making a comeback, buoyed by improving performance in Chinese stock markets and renewed investor interest.

According to ACE MF data, China’s Shanghai Composite and Hong Kong’s Hang Seng Index have surged up to 35% over the past year, outperforming India’s Nifty and Sensex. This rally follows policy interventions by Chinese regulators to revive the economy, stabilise the property sector, and counter deflation.

Top-Performing Funds in China

Currently, four mutual fund schemes in India focus on the Greater China region (mainland China, Hong Kong, and Taiwan):

Source: Moneycontrol

Mirae and Nippon’s ETFs, which invest directly in Greater China stocks, have led the recovery. In contrast, fund-of-funds (FoFs) like Edelweiss and Axis, which invest in global funds with China exposure, have posted moderate gains.

How Can You Invest in China’s Stock Market?

Post SEBI’s 2022 pause on overseas investments, only Axis and Edelweiss currently accept SIPs in their China-focused schemes. Mirae Asset and Nippon India funds remain closed to new investors, though existing investments continue.

Read more: Best International Mutual Funds in India in July 2025- Kotak NASDAQ 100 FOF and Others Based on 3Y CAGR

Conclusion

With Chinese markets showing signs of recovery and supportive policy measures in place, investor confidence is returning. Despite weak long-term returns due to past challenges like COVID-19 and property sector issues, the recent surge presents a renewed, albeit selective, opportunity for Indian investors eyeing global diversification.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.