The Shanghai Stock Exchange (SSE) is one of the world’s largest stock exchanges, and along with the Shenzhen Stock Exchange, is one of the two major exchanges operating in mainland China. Despite only being founded in 1990, the SSE is now the world’s fourth-largest exchange with a total market capitalisation of more than $5 trillion and over 1,000 stock listings.
Can I invest in the Shanghai Stock Exchange from the UK?
Yes, you can still invest in stocks on the SSE from the UK, but it’s not as straightforward as it is with many other foreign exchanges. The Shanghai Stock Exchange remains closed to direct investments from foreign individuals, but you can still invest via international investment companies, or by investing in China-focused exchange-traded funds (ETFs).
Choose a broker or trading platform. When choosing a platform, make sure it lets you trade the specific SSE stocks you want to invest in. Different brokers also have different fee structures, and it’s important to find the one that will be most cost-effective for the way you’d like to invest.
Open a share-trading account. Once you’ve selected a broker or platform, you’ll need to open a trading account before you can start investing in the SSE.
Deposit funds. In order to begin trading, you’ll need to deposit money into your account. Depending on which platform you use, your money may be automatically converted from pounds into US dollars, and you may need to pay a foreign exchange fee.
Buy SSE stocks. Once your account is funded, you’ll be able to buy and sell shares. Most brokers or platforms will let you search for the specific SSE stocks you want to buy.
How much does it cost to invest in the Shanghai Stock Exchange?
This will really depend on the method of investing you use. If you use a broker or trading platform to buy SSE stocks, you’ll be charged based on its specific fee structure, and the cost of trades can vary significantly across different brokers and platforms.
Some brokers will charge large commissions on single trades, whereas others offer “fee-free” trading. If you’re only going to be investing small amounts, or plan on making multiple trades, it may be cheaper to go with a platform with low or no fees. You can compare trading fees below:
Broker trading fees
Below is a breakdown of the basic fees you’ll pay when making a single trade using each broker:
A cheaper way to invest may be via a Shanghai Stock Exchange-focused fund, which tracks the performance of specific stocks on the exchange without you having to buy the stocks directly. Exchange-traded funds can give you exposure to Chinese stocks while generally only charging a small annual fee of around 0.10%.
One of the most popular Chinese stock ETFs is the Harvest CSI 300 China A-Shares ETF (ASHR), which tracks the performance of the top 300 stocks on the Shanghai and Shenzhen stock exchanges. There are also a number of other ETFs that track stocks found on the SSE, including:
VanEck Vectors ChinaAMC CSI 300 ETF
CSOP FTSE China A50 ETF
KraneShares Bosera MSCI China A ETF
Other ways to invest in the SSE
Since 2003, foreign institutional investment firms have been able to buy certain Shanghai Stock Exchange-listed stocks through the Qualified Foreign Institutional Investor (QFII) programme. This means that you can still invest in so-called China A-shares by going through an accredited institutional company.
What are China A-shares?
China A-shares are stocks that trade on the Shanghai (SSE) and Shenzhen (SZSE) stock exchanges, but are only available to Chinese investors or foreign institutions using the QFII system. A-shares are quoted in Chinese renminbi, and cannot be bought directly by foreign investors.
In comparison, China B-shares are stocks that are widely available to foreign investors, and are usually quoted in US dollars or other currencies.
Why should I invest in the SSE?
Despite its relative lack of coverage in the West, the Shanghai Stock Exchange is the world’s fourth-largest exchange, and the major exchange of China, which is the world’s second-largest country by GDP after the US.
The Shanghai Stock Exchange lists some of the world’s largest and most successful companies, and may offer investors a way to diversify their stock portfolio. While it can be hard to invest directly in the SSE, there are a number of Chinese-focused ETFs that make investing in the Chinese stock market quite straightforward.
Which stocks are on the Shanghai Stock Exchange?
The Shanghai Stock Exchange lists many of the largest Chinese-based companies, including:
Tom Stelzer is a writer for Finder specialising in personal finance, including loans and credit, as well as small business and business loans. He has previously worked as a freelance writer covering entertainment, culture and football for publications like FourFourTwo and Man of Many. He has a Master of Media Arts and Production and Bachelor of Communications in Journalism from the University of Technology Sydney. See full bio
Find out how to spot some of the best day trading stocks available in the UK and abroad, along with tips for managing your investment portfolio on a day-to-day basis.
Thinking about buying shares in Flutter Entertainment? We explain how to do it and compare a range of providers who will give you access to global markets.
Ever wondered how to buy shares in Wincanton? We explain how and compare a range of providers that can give you access to many brands, including Wincanton.
Ever wondered how to buy shares in United Utilities? We explain how and compare a range of providers that can give you access to many brands, including United Utilities.
Ever wondered how to buy shares in WPP Group? We explain how and compare a range of providers that can give you access to many brands, including WPP Group.
Find out how to buy shares in Merlin Entertainments, see Merlin Entertainments’ share prices over the last three months and check out our must-do checklist if you’re looking to invest.
We explain how to buy shares in Howden Joinery, explaining the costs and fees you could come up against. We also have a checklist for anyone looking to invest in a company.
We walk you through how to buy shares in Severn Trent, covering all of the costs and fees you could come up against. We also have a checklist for anyone looking to invest in a company.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.