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There are many friends in the U.S. who want to help their families in China invest, or who have returned home for a long time but still want to buy U.S. stocks. Today we’ll introduce how to invest in U.S. stocks from mainland China.

Mainland China investors who want exposure to the U.S. stock market can mainly consider the following three methods:

  • Use a regular A-share account to buy domestically listed QDII ETFs;
  • After meeting the RMB 500,000 threshold, buy eligible Hong Kong ETFs through Stock Connect;
  • Use legally sourced offshore funds, apply for an account with a U.S. international brokerage, and buy U.S. stocks and U.S. ETFs directly.

The first two methods use RMB and are carried out through licensed financial institutions in mainland China; the third method lets you directly hold U.S. securities such as Apple, Nvidia, VOO, and QQQ, but account opening, cross-border funding, and tax issues are more complicated.

Investment method Required account Main requirement Best for
QDII ETF Regular Shanghai and Shenzhen A-share account Usually no RMB 500,000 threshold Want to invest in U.S. stock indexes with RMB
Off-exchange QDII fund Fund sales platform account Usually allows small monthly investments Do not want to study on-exchange premiums
Stock Connect ETF A-share account + Stock Connect access RMB 500,000 in average daily assets over the first 20 trading days Want to buy eligible Hong Kong Exchange ETFs
U.S. brokerage U.S. international brokerage account Broker review + legally sourced offshore funds Want to buy U.S. stocks and ETFs directly

Method 1: Buy QDII ETFs with an A-share account

Buying on-exchange

This is the easiest method for most mainland investors. As long as you open a regular Shanghai and Shenzhen A-share securities account, you can buy cross-border ETFs listed on domestic exchanges just like buying stocks.

Most major licensed brokerages in China can trade QDII ETFs, for example:

  • CITIC Securities;
  • Huatai Securities;
  • Guotai Haitong Securities;
  • China Merchants Securities;
  • China Galaxy Securities;
  • GF Securities.

When opening the account, it is enough to enable the Shanghai A-share account, Shenzhen A-share account, and RMB cash account; there is no need to open a special so-called “U.S. stock account.”

The purchase process is as follows:

  1. Open a Shanghai and Shenzhen A-share account in the brokerage app;
  2. Link your own domestic bank card;
  3. Deposit RMB through a bank-securities transfer;
  4. Search for the QDII ETF code;
  5. Enter the buy price and quantity to place an order.

Common products include:

Code Fund Main investment focus
513100 国泰纳斯达克 100 ETF Nasdaq 100 Index
513850 易方达美国 50 ETF MSCI U.S. 50 Index

These products are for illustrating the trading method only and do not represent investment recommendations. The specific index tracked, fees, holdings, and risks should be based on the fund company’s latest materials.

You must check the premium before buying. On-exchange QDII ETFs have two different prices:

  • Fund NAV: the value of the assets the fund actually holds;
  • On-exchange price: the price investors actually buy and sell at on the exchange.

For example, if a fund’s reference NAV is RMB 1 but the on-exchange price reaches RMB 1.20, that means investors are paying about a 20% premium.

If the premium falls back, investors may still lose money even if the U.S. stock index has not fallen. Before placing an order, check:

  • The latest fund NAV or intraday reference NAV;
  • The current on-exchange price and premium rate;
  • Whether the fund company has issued a premium-risk alert;
  • Trading volume, bid-ask spread, and liquidity.

Don’t want to study premiums: buy off-exchange QDII funds

If you do not need intraday real-time trading and mainly want long-term regular investing, you can choose off-exchange QDII index funds or ETF feeder funds.

Common products include:

Investment focus Fund name Class A code Class C code Main features
S&P 500 华夏标普 500 ETF 发起式联接（QDII） 018064 018065 Covers about 500 large U.S. listed companies with relatively diversified sectors
S&P 500 博时标普 500 ETF 联接（QDII） 050025 006075 Tracks the S&P 500 and is suitable as a core allocation to U.S. large-cap stocks
Nasdaq 100 华夏纳斯达克 100 ETF 发起式联接（QDII） 015299 015300 Mainly invests in large U.S. technology and growth companies, with usually higher volatility
Nasdaq 100 广发纳指 100 ETF 联接（QDII）人民币 270042 006479 Launched earlier, but subscription limits may be adjusted frequently

These funds are only used to explain how to buy off-exchange QDII products and do not constitute a specific investment recommendation. Fund subscription status, daily limits, and sales channels may change at any time, so when buying, search by the fund code on the platform and check the latest announcement.

Off-exchange QDII funds can usually be purchased through the following channels:

  • The fund company’s official app or website;
  • The fund page in a bank app;
  • The off-exchange fund section in a brokerage app;
  • Third-party platforms with fund sales qualifications.

When buying, searching directly by the fund code is the most accurate. For example, if you want to buy 华夏标普 500 ETF 联接 C, search for code 018065 instead of searching for its on-exchange ETF code.

How do you choose between Class A and Class C?

  • Class A: Usually charges a subscription fee and generally does not charge a sales service fee, making it more suitable for investors planning to hold long term;
  • Class C: Usually does not charge a subscription fee, but accrues a daily sales service fee, making it more suitable for regular investing, smaller amounts, or investors with an uncertain holding period.

However, different sales platforms may offer discounts on Class A subscription fees. In the end, you should compare the actual subscription fee, sales service fee, and expected holding period, and not simply assume that Class A or Class C is always cheaper.

What should you check before buying?

  1. Confirm whether the fund tracks the S&P 500 or the Nasdaq 100;
  2. Confirm that you are buying RMB-denominated shares, not USD cash-settled shares;
  3. Check whether subscriptions and regular investing are currently open;
  4. Check the daily subscription limit;
  5. Compare the management fee, custody fee, and sales service fee;
  6. Confirm the redemption fee and the expected time for proceeds to arrive.

The S&P 500 covers a broader range of sectors and is suitable for investors who want overall exposure to large U.S. companies; the Nasdaq 100 is more concentrated in technology and growth companies, so its potential returns and volatility are usually higher as well.

Off-exchange funds are subscribed to based on fund NAV, so there is no secondary-market premium. However, when placing an order, you cannot know the final execution NAV in advance, and NAV disclosure is usually about one trading day later than for ordinary domestic funds.

Method 2: Enable Stock Connect to buy Hong Kong ETFs

Stock Connect adds Hong Kong stock trading access to an existing A-share securities account; there is no need to open a separate Hong Kong securities account.

Individual investors usually need to meet the following requirements:

  • In the 20 trading days before applying, the average daily assets in the securities account and cash account must not be less than RMB 500,000;
  • Funds and securities borrowed through margin financing and securities lending do not count toward the threshold;
  • Complete the Stock Connect knowledge test and risk assessment;
  • Sign the Stock Connect trading risk disclosure statement;
  • No serious adverse credit record or prohibited trading circumstances.

After meeting the requirements, you can apply for Stock Connect access in the apps of brokerages such as CITIC, Huatai, Guotai Haitong, China Merchants, Galaxy, and GF.

How do you do it?

  1. First open a regular Shanghai and Shenzhen A-share securities account;
  2. Maintain average daily assets of RMB 500,000 for 20 consecutive trading days;
  3. Search for “Stock Connect access” in the brokerage app;
  4. Complete the knowledge test, risk assessment, and agreement signing;
  5. Search for eligible ETFs on the Stock Connect trading page;
  6. Place the order in RMB, and the system will complete the settlement and foreign-exchange conversion.

Stock Connect cannot directly buy VOO, QQQ, SPY, or Apple shares listed in the U.S.; it can only buy Hong Kong securities on the Stock Connect eligible list.

As of August 2026, representative Hong Kong-U.S. theme products include:

Hong Kong code Reference name
03442 Nanshan Hong Kong-U.S. Technology ETF
03406 Ping An Technology Selection ETF
03489 E Fund AI ETF

These products usually hold stocks in both the Hong Kong and U.S. markets, so they are not the same as a pure S&P 500 or Nasdaq 100 fund. The Stock Connect eligible list is also adjusted regularly, so before buying, you should confirm on the exchange or broker’s page whether it is currently allowed to buy.

Method 3: Open a U.S. brokerage account with legitimate offshore funds

Some U.S. international brokers currently allow mainland China residents to submit account applications. After the account is approved, you can directly buy:

  • Shares of U.S.-listed companies;
  • U.S. ETFs such as VOO, QQQ, and VT;
  • U.S. Treasuries and other securities that fall within your account permissions.

Brokers you can look at include:

These accounts usually require the following:

  • an ID card or passport;
  • proof of a mainland China residential address;
  • employment, income, and asset information;
  • Chinese tax residency information and a taxpayer identification number;
  • bank account and source-of-funds documentation;
  • W-8BEN declaration for non-U.S. tax residents.

Submitting an application does not mean it will definitely be approved. The countries and regions accepted by the broker, account-opening requirements, minimum assets, and trading permissions may all change; the final result depends on the account-opening page and the compliance review.

The real challenge is funding the account

The annual equivalent of US$50,000 in the mainland China foreign-exchange purchase quota cannot be used for overseas securities investment.

Therefore, you should not use any of the following methods to fund an overseas broker:

  • Declare the foreign-exchange purchase purpose as travel, study abroad, or visiting relatives, and then transfer the funds to the broker;
  • Borrow a relative or friend’s annual foreign-exchange quota;
  • Split foreign-exchange purchases and remittances among multiple people;
  • Use underground banks or unclear exchange channels;
  • Provide false statements about the source and use of funds to the bank or broker.

The U.S. broker route is more suitable for people who already have legitimate offshore funds with a clear source, such as:

  • Income from working abroad;
  • Deposits legally kept overseas in the past;
  • Salary or dividends paid by an offshore company;
  • Funds obtained from the lawful sale of offshore assets;
  • Other offshore assets with contracts, bank statements, and tax records.

Even if the funds are already overseas, banks and brokers may still ask for proof of the source of funds, income, asset sales, and tax payment records.

How are U.S. stocks taxed?

U.S. corporate dividends: Under U.S. domestic law, dividends from U.S. sources received by non-U.S. persons are generally subject to a 30% withholding tax. However, after a Chinese tax resident who qualifies under the China-U.S. tax treaty correctly submits W-8BEN, the withholding tax rate on U.S. corporate dividends can usually be reduced to 10%.

For example, if a U.S. company pays a $100 dividend:

  • Without a valid W-8BEN, $30 may be withheld;
  • If the China-U.S. tax treaty applies and W-8BEN is correctly submitted, $10 is usually withheld;
  • The account will actually receive about $90.

Dividends paid by U.S.-registered ETFs are usually handled under similar principles. However, REITs, partnerships, PTPs, substitute payments for securities lending, and other special distributions may follow different rules and cannot all be calculated at 10%.

Capital gains from buying and selling U.S. stocks: For ordinary investors who live in China, are not U.S. tax residents, did not spend the relevant number of days in the U.S. during the year, and whose investment income has no actual connection with a U.S. trade or business, capital gains from buying and selling U.S. stocks are generally not subject to U.S. federal income tax.

But the following situations may be different:

  • Spent 183 days or more in the U.S. during the year;
  • Have already become a U.S. tax resident;
  • The income has an actual connection with a U.S. trade or business;
  • Invested in U.S. real-estate-related interests;
  • Purchased PTPs or other products with special withholding rules.

So the statement “you never pay U.S. tax after submitting W-8BEN and selling stocks” is not accurate. W-8BEN is only a tax status declaration, not a universal tax exemption certificate for all investment income.

W-8BEN is a tax status declaration submitted by non-U.S. individuals to a U.S. broker or other paying agent. It is mainly used to:

  • prove that the account holder is not a U.S. tax resident;
  • avoid being treated as an account that failed to provide tax status information;
  • claim treaty benefits under the China-U.S. tax treaty when eligible;
  • determine the withholding tax rate on income such as U.S. dividends.

Individuals complete W-8BEN; companies, businesses, and other entities usually complete W-8BEN-E. U.S. citizens, green card holders, or U.S. tax residents generally do not fill out W-8BEN; they fill out W-9 instead. Most brokers provide an electronic version at account opening, so users do not need to mail the form to the IRS themselves. W-8BEN should be submitted to the broker or paying agent, not directly to the IRS.

After paying U.S. tax, do you still have to pay tax in China?

Please note: W-8BEN only deals with U.S. withholding tax and does not exempt Chinese tax residents from their Chinese tax obligations.

In principle, Chinese residents must pay individual income tax on income earned both inside and outside China. Income obtained through a U.S. broker includes:

  • Dividends from U.S. stocks and ETFs, which are foreign-sourced interest, dividends, and bonus income;
  • Profits from selling U.S. stocks or ETFs, which are foreign-sourced income from the transfer of property.

Under the current Individual Income Tax Law, interest, dividends, bonus income, and income from the transfer of property are generally subject to a 20% proportional tax rate.

Specifically:

  • Dividends are usually calculated based on the dividend income received;
  • Stock transfer income is usually calculated as the sale proceeds minus investment cost and reasonable expenses;
  • Eligible foreign taxes already paid can be credited within China’s foreign tax credit limit.

For example, if a Chinese tax resident receives a $100 dividend from a U.S. company:

  • The U.S. withholds $10 under the tax treaty;
  • China’s tax calculated at 20% is $20;
  • Under a simplified case that meets the credit requirements, the $10 already paid in the U.S. can be credited;
  • You may still need to pay the equivalent of another $10 in tax in China.

Actual filing also needs to take into account the RMB exchange rate used for conversion, tax credit documentation, the timing of when the income was received, and the nature of the specific product. You cannot calculate it based only on the net amount credited to the brokerage account.

Chinese tax resident individuals who earn foreign income generally should file from March 1 to June 30 of the following year. When claiming a foreign tax credit, keep the following:

  • Annual brokerage trading reports;
  • Dividend records;
  • Records of stock purchase cost and sale transactions;
  • U.S. Form 1042-S;
  • U.S. withholding tax records;
  • Bank transaction statements;
  • Other documents that can prove the income and the tax already paid.

Reference materials

Also pay attention to U.S. estate tax

Non-U.S. citizens and non-U.S. residents who directly hold shares of U.S. companies also need to pay attention to U.S. estate tax.

Shares of U.S. companies are generally treated as U.S.-situs assets. When a non-U.S. citizen or non-U.S. resident dies, if the fair market value of U.S.-situs assets exceeds $60,000, the estate executor will usually need to file Form 706-NA, and U.S. estate tax may apply.

Note that $60,000 is a very low filing threshold. It is not the same as the multi-million-dollar estate tax exemption available to ordinary U.S. residents.

When holding a large amount of U.S. securities, you can also compare:

  • U.S.-domiciled ETFs;
  • Ireland-domiciled UCITS ETFs;
  • QDII funds;
  • Stock Connect funds;
  • Professional planning solutions such as insurance and trusts.

Estate tax involves nationality, domicile, asset location, account structure, and inheritance arrangements. If the amount is significant, consult a professional familiar with China-U.S. cross-border taxation.

Which of the three methods is the most cost-effective?

If all three methods are available, then for most Chinese tax residents, QDII funds are usually the easiest and the most cost-effective.

Method Advantages Disadvantages
QDII funds Purchased in RMB, easy to inherit, and individual gains from buying and selling are currently usually exempt from individual income tax Higher management fees; exchange-traded ETFs may trade at a premium
Stock Connect ETFs RMB trading, no offshore account required Requires a 500,000 RMB threshold; limited product selection, and they are usually not pure U.S. stock index products
U.S. brokerages Broadest product selection; ETFs such as VOO and QQQ have the lowest fees and almost no premium Requires legally obtained offshore funds, and you also need to handle W-8BEN, Chinese tax reporting, and U.S. estate tax
  • From a tax perspective: Gains from buying and selling domestic QDII funds are currently usually exempt from individual income tax. If you buy and sell U.S. stocks directly through a U.S. brokerage, the profit is, in principle, foreign property transfer income and needs to be reported in China.
  • From an inheritance perspective: QDII and Stock Connect holdings are both held through domestic accounts, so inheritance is relatively simple. If you directly hold U.S. stocks or U.S.-domiciled ETFs, and U.S. assets exceed $60,000, you need to pay attention to U.S. estate tax and cross-border inheritance procedures.
  • From a premium perspective: Large U.S. ETFs usually have the smallest bid-ask spreads. OTC QDII funds are subscribed at NAV and do not have an exchange premium; exchange-traded QDII funds and Stock Connect ETFs require special attention to premiums and liquidity.
  • From a convenience perspective: OTC QDII funds are the simplest and can be used directly for RMB regular investing; U.S. brokerages are the most complicated and require offshore funds, cross-border tax handling, and inheritance arrangements.

In simple terms:

  • For long-term investing in the S&P 500 or Nasdaq-100: prioritize low-fee OTC QDII funds, or exchange-traded QDII ETFs without an obvious premium;
  • If you want to buy individual stocks such as Apple and Nvidia directly: you can only consider a U.S. brokerage;
  • If you already have legally obtained offshore funds: U.S. brokerages offer more product choices, but you need to handle taxes and estate tax;
  • If you just want something simple and hassle-free: choose OTC QDII funds.

Overall, QDII is not necessarily the lowest-fee option, but it is usually the most balanced choice in terms of tax, inheritance, and operational cost.

Summary

For most ordinary investors whose funds are located in mainland China, the simplest method is to open a standard Shanghai/Shenzhen A-share account and buy domestically listed QDII ETFs; if you do not want to study exchange premiums, you can choose OTC QDII funds.

After reaching the 500,000 RMB asset threshold, you can activate Stock Connect in the same securities account and buy Hong Kong ETFs that are on the Stock Connect list.

Mainland China residents may also apply for an account with a U.S. international brokerage, but the personal foreign-exchange purchase quota for convenience cannot be used for overseas securities investment. This approach is more suitable for people who already have offshore funds with a legitimate source and can explain where the money came from.

W-8BEN in a U.S. brokerage account can only prove non-U.S. tax resident status and apply a treaty withholding rate; it does not exempt Chinese tax residents from the obligation to report foreign income. When directly holding a large amount of U.S. stocks, you also need to consider U.S. estate tax in advance.

This article is for introducing investment channels and general tax rules only, and does not constitute investment, legal, foreign exchange, or individualized tax advice.

U.S. stock knowledge

Stock Investing Basics

Below are a few commonly used U.S. stock brokerages and their signup bonuses

Overview Signup Bonus Quick Take
Moomoo (Futu) Get $1,030 in stock + 8.1% APY Professional, no commissions, and free Level 2 market data. Good for both beginners and advanced users. Chinese-language customer service available. Requires SSN
TradeUp (Tiger Brokers) 50 shares of NVDA + chance to win 5 shares + 4% for three months No commissions, supports U.S. and Hong Kong stocks, and offers WebTrading. Chinese-language customer service available. Available globally.
Webull $100 Amazon + 12 fractional shares + 1 month of Premium membership No commissions, with frequent deposit-for-stock promotions
BBAE Up to $650 reward 0 commission, 0 fees; Chinese-friendly, and you can open an account without SSN/ITIN
Robinhood 1 free stock No commissions, with an interest-bearing cash account. Simple interface that is beginner-friendly
Interactive Brokers Up to $1,000 Wide product coverage. Professional, comprehensive trading platform, and high cash interest rates.
TradeStation $250 Professional trading platform with a full set of supporting tools
Schwab Up to $1,000 Professional and easy to use. Global ATM fee-free withdrawals, and $0 stock commissions
Fidelity Brokerage Account Sign-up link Well-established brokerage, no trading fees, and TurboTax included
BIT (formerly Matrixport) $400 in stock Supports direct crypto deposits and withdrawals, no China CRS, and you can register directly with an ID card
SoFi Invest Get $75 for opening an account No commissions, supports Stock Bits
WealthFront Manage up to $5,000 for free Automated investing and wealth management
M1 Finance Deposit funds and get $10 No commissions, with automatic investing based on your portfolio

If you do not have SSN/ITIN but still want to trade U.S. stocks, take a look at the brokerages/platforms below. All of them allow registration using a full set of Chinese documents, and you can sign up with just an ID card or passport. None of them participate in China CRS

  • BBAE: Chinese-friendly; you can open an account without SSN/ITIN.
  • BIT (formerly Matrixport): You can open an account with just an ID card, and approval can be completed within a few hours.
  • Bitget: Identity verification can be completed with an ID card/Chinese passport.

If you want to invest in U.S. stocks from mainland China, see this summary