To The Moon

In the global investment landscape, the Nasdaq, S&P 500, and Dow Jones have long been seen as the benchmark indicators for U.S. markets. But as China’s capital markets open up further, its core indices — the CSI 300, SSE 50, and CSI 500 — are drawing increasing attention from international investors.

This article breaks down what these indices mean, compares the U.S. and Chinese markets, and shows you how to gain exposure to Chinese assets through ETFs in a simple, beginner-friendly way.

1.What Are the “Big Three” in the U.S. and China?

Let’s start with the most famous “American trio” — the U.S. market’s three major indices:

Nasdaq Composite

Heavyweight in tech stocks, market-cap weighted. Apple, Microsoft, and NVIDIA alone make up roughly 30% of its market cap.

Smaller fluctuations, bigger growth potential — perfect for tech innovation chasers.

S&P 500

Tracks the top 500 U.S. companies by market cap with balanced sector coverage.

Often called the “thermometer” of the U.S. economy — stable, yet growth-oriented.

Dow Jones Industrial Average (DJIA)

30 blue-chip giants, price-weighted, so higher-priced stocks have a bigger influence.

Includes leaders in traditional industries like aviation, beverages, and fast food.

On the China side, we have our own “top three” — each with distinct characteristics:

SSE Composite Index

Covers all stocks listed on the Shanghai Stock Exchange, including large SOEs and traditional blue chips.

China’s earliest broad-based index, widely viewed as a barometer for the economy.

SZSE Component Index

Tracks 500 major stocks on the Shenzhen Stock Exchange, featuring more private and emerging-industry companies.

Known for growth and vibrancy.

ChiNext Index

Focused on small-cap, innovative companies on Shenzhen’s ChiNext board.

Higher volatility, but big growth potential for risk-tolerant investors.

2.Why Look at China’s Core Indices Now?

Lower valuations = safety cushion U.S. large-cap P/E ratios often exceed 20x, while the CSI 300 is under 14x — cheaper, with room for re-rating.

Valuation Comparison of Major Global Stock Market Benchmark Indices：

Higher dividend yields Many Chinese blue chips offer dividend yields of 3–4%, comfortably above U.S. benchmarks, providing steady cash flow.

Policy support + innovation boom New regulations like “National Nine Rules” require companies to allocate more profits to dividends. The government has also been directly buying Chinese ETFs. Sectors like AI, semiconductors, EVs, and humanoid robots are advancing rapidly.

Global capital inflows Sovereign wealth funds from Korea, the Middle East, and Europe are increasing allocations to China. Some institutions predict Chinese assets could be a global allocation theme in the next three years.

Quick Comparison: U.S. vs. China Indices

Even if you’re based overseas, you can easily gain exposure to Chinese assets — with Tiger Trade, you can open an account in one go and access China’s core indices like the CSI 300, SSE 50, or CSI 500 through Hong Kong- or U.S.-listed ETFs, or via China A-Shares Connect, seizing the opportunities from China’s economic transformation.

3.Three-Step Beginner’s Guide to Allocating to China

1. Pick Your Index

Stable: CSI 300 + SSE 50

Growth: CSI 500 + STAR 50

2. Select the Right ETF

With platforms like Tiger Trade, overseas investors don’t need a mainland brokerage account. You can trade Chinese index ETFs through Hong Kong or U.S. Markets, and you can also invest via China-A Share Connect.

3. Avoid Common Mistakes

• Avoid ETFs with excessively high premiums (ideally, the premium should be under 1%). On Tiger Trade, you can check the premium rate in the product details.

• Check whether the fund’s assets under management are large enough (over 500 million RMB) to avoid liquidation risk.

• Make sure the holdings are not overly concentrated in one sector — keep a balanced mix of technology, consumer, and financial stocks.

By following this three-step approach, even beginners who have never invested in the Chinese market can easily choose the right index ETFs based on their risk preferences, enter via U.S. or Hong Kong-listed channels, effectively avoid common investing pitfalls, quickly build a stable yet growth-oriented Chinese asset portfolio, and smoothly transition to more advanced investment strategies.

4.Why Use Tiger Trade for China Investing?

Whether you believe in the long-term growth of China’s economy or want to seize current structural opportunities in the market, investing in Chinese assets through Tiger Trade is more flexible and efficient.

We offer a one-stop global trading experience — with just one account, you can invest in a variety of China-related assets:

• Through Stock Connect, directly buy core A-share stocks or ETFs listed in Shanghai and Shenzhen;

• Through the Hong Kong market, invest in leading Chinese companies listed in Hong Kong and China-themed ETFs;

• Through the U.S. market, trade ETFs with exposure to China (such as KWEB, FXI) and popular U.S.-listed Chinese companies (like Alibaba, Baidu, and Pinduoduo).

Open an account and fund it today to start your journey into Chinese asset investing — and discover more opportunities on Tiger Trade!

5.Conclusion

China’s market, with its valuation advantage, policy tailwinds, and innovation drive, is catching up to the U.S. “big three.” With a simple “three-step” process and platforms like Tiger Trade, even beginners can put China’s core indices in their portfolio and share in the country’s growth story. ETFs are the easiest way to start — and a CSI 300 ETF could be your first step toward building a globally diversified portfolio.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investing involves risks, and you should do your own research before making decisions.

6.Appendix: ETFs Mentioned in This Article