How Mainland Chinese Investors Can Buy the S&P 500 and Nasdaq Right Now
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Since my previous piece, My Investment Memoirs, went out, many friends have come around to the realization that A-shares and Chinese ADRs are a quagmire that most ordinary investors should avoid.
A number of decisive friends have already made money following that logic. Many have asked me for investment advice. For ordinary people without deep financial knowledge, my answer is always the same:
You live in mainland China. Your income is in mainland China. Your money sits in onshore bank accounts. You primarily hold renminbi.
We are not discussing immigration status, overseas salaries, or complex cross-border channels as the main path.
For most mainlanders, the most realistic question is not "what is the global optimum?"
It is: how do I use the channels I can already operate, compliantly and steadily, to buy the S&P and the Nasdaq over the long term?
Conclusion first. The S&P and Nasdaq remain good long-duration assets, but they are not cheap here. This US rally has been driven mostly by AI, semiconductors, and a handful of mega-cap tech names, and valuations are not low. If inflation re-accelerates or rate cuts get pushed out, tech will come under pressure. So the answer is not "don't buy" — it is "don't chase and go all-in at once." Ordinary mainland investors are best served by slowly building exposure through QDII: onshore OTC funds suit dollar-cost averaging, while onshore-listed ETFs are fine when purchased at low premiums — never chase hot premiums.
Should you open a Hong Kong account?
Should you set up an offshore broker?
For most mainlanders, the first step is none of those.
The first step is to open the channels you already have:
• Alipay.
• Your banking app.
• Your brokerage app.
• Fund-company direct platforms.
What you can buy in these places is mainly QDII funds.
Search "Nasdaq" or "S&P" in Alipay and you'll see a list of products. Your banking app shows similar products.
They may not be the cheapest, and they may not be the most flexible. But they are the easiest way for ordinary mainlanders to begin.
The banking channel in particular is overlooked. When Alipay restricts purchases, the bank may still have quota. When Alipay caps you, the bank channel may still have room. When the bank has nothing, the fund company's direct platform may still be open.
So don't fixate on a single app.
What you actually need to compare is:
• Can you buy it at all?
• What's the purchase cap?
• What's the fee?
• How many days to redeem?
• What does it track — the S&P, the Nasdaq, or an overseas tech theme?
For ordinary investors, the first step in buying US indices is not chasing the most attractive product. The first step is finding an entry point you can stick with for the long run.
You use renminbi to buy an onshore fund. That fund uses regulator-approved quota to buy assets overseas — for example, the S&P 500, the Nasdaq 100, US tech stocks, or offshore ETFs.
You don't need to convert currency yourself. You don't need to open an offshore brokerage account. You don't need to handle cross-border remittance yourself. You don't need to explain complex sources of funds. The fund company handles all of this within the rules.
So QDII is essentially "a fund shell that buys overseas assets on your behalf." It's not perfect. But it solves the single biggest headache for mainlanders:
You're onshore — how do you compliantly buy offshore assets?
QDII's drawbacks are obvious. Fees aren't low. Quota tightens. Hot markets trigger purchase caps. Tracking error can be meaningful. Onshore-listed QDII ETFs can trade at steep premiums.
But its biggest advantage is equally obvious:
It sits inside the system.
Ordinary investors aren't looking for the most exciting path. They're looking for one they can walk for the long haul. QDII may not be the sexiest option, but it is the main path for mainlanders buying the S&P and the Nasdaq.
OTC (off-exchange) QDII refers to the funds you buy inside Alipay, your banking app, or fund platforms. It's for people who don't want to stare at the tape. You invest a little each month and accumulate slowly. No need to read the order book. No need to check premiums daily. No need to time the cheapest minute of the day.
For most ordinary investors, this is more than enough.
Its advantage is simplicity. Low minimum. Familiar UX. Suited to long-term dollar-cost averaging.
Its disadvantage is speed. Slow subscription, slow redemption, slow settlement. Fees typically aren't low. Purchase caps — some funds now limit daily purchases to 10 or 50 yuan, so larger tickets have to go on-exchange.
If you simply want to allocate some S&P or Nasdaq exposure over time, OTC QDII is the most hassle-free choice. Especially for smaller accounts, don't over-engineer from day one. Start. Stay consistent. Don't chase. That matters more than researching exotic channels.
Many people only look at Alipay for fund purchases. But if you intend to buy QDII long-term, you need to look at the banking channel too.
The reason is simple:
QDII runs on quota.
Different platforms can have different quota. Alipay restricting purchases does not mean the whole market is restricted. Some banks may still be open. Some brokers may still be open. Some fund companies' direct platforms may still be open.
Especially for larger tickets, relying solely on Alipay can leave you stranded.
The banking channel offers another benefit: some products and services are better suited to larger sums — subscription limits, redemption logistics, account cash management, and customer service.
Of course, banks aren't necessarily cheaper. You still need to check fees. Don't assume "bank" means "better." And don't let a relationship manager talk you into a product you don't understand.
Look at three things only:
• What index does it track?
• What's the all-in fee?
• How much can you still buy?
If those three questions can't be answered clearly, don't buy.
Onshore-listed QDII ETFs are cross-border ETFs you buy through an A-share brokerage account — Nasdaq ETFs, S&P ETFs, overseas tech ETFs.
Their advantage is flexibility. Intraday trading. Some allow T+0. You control your entry price and cadence.
But their biggest trap is the premium.
What is a premium? Simply put: an ETF is worth 100 yuan, but because so many people want in, it gets bid up to 105. You think you're buying the Nasdaq; in reality you've paid a 5-yuan cover charge to get on the bus. That's the premium.
Onshore ETF premiums blow out precisely when US markets rip and RMB investor sentiment runs hot. Do not impulse-buy at those moments. Because once you're in, even if the Nasdaq doesn't drop, you can still lose money if the premium compresses.
My earlier chart put it bluntly. For most people, the more conservative rule is:
• Premium under 3%: worth watching.
• Premium above 5%: stop.
That's not to say high premiums can never be bought — the premise is that you maintain a dollar-cost-averaging rhythm and let time dilute volatility.
So if I open a Hong Kong bank card, can I directly buy US stocks?
Saturday morning, 7:30 a.m., the queue at Bank of China in Tuen Mun:
If something actually makes money, opening the account itself becomes exceptionally hard.
Opening a Hong Kong bank card is not, in itself, a problem. Many people need a Hong Kong account for travel, spending, study, work, or receiving payments.
But "having a Hong Kong bank card" and "being suited to directly invest in US stocks" are not the same thing — especially now, as Hong Kong banks and brokers have noticeably tightened scrutiny of mainland clients.
Once the card is open, you can buy US stocks through the bank's brokerage at high fees; the internet brokers were essentially cut off from mainlanders after 2023.
The key question is not whether you can open the card. The key question is what money you'll use to invest afterward.
Where does the money come from? Is it legitimately earned offshore? Is it a repatriation of offshore assets? Can you clearly explain its intended use?
If your money is already onshore — RMB salary and onshore deposits — do not simply assume: "I opened a Hong Kong card, so I can route around the rules to buy US stocks."
This involves forex usage, source of funds, investment account review, and downstream tax issues.
A Hong Kong bank card is an account tool, not a magic tunnel.
If you just want to spend on travel or have genuine cross-border life needs, the card is useful. But if you're simply trying to move mainland funds offshore to buy US stocks, proceed with great caution.
I won't elaborate on this one. Those who understand will know how to operate; those who don't can search and read up on their own.
If your capital is under 100k RMB:
Prioritize OTC QDII. Alipay, banking app, fund platforms all work. The point is to start dollar-cost averaging and not over-engineer.
If your capital is 100k–500k RMB:
Use OTC QDII as the core. Then allocate some to onshore-listed ETFs. But only if you can read premiums. If you can't, don't trade the onshore-listed ones.
If your capital is above 500k RMB:
Compare across channels. Alipay, bank, broker, fund-direct — look at all of them. For OTC funds, watch purchase caps and fees. For onshore ETFs, watch volume and premium. The larger the capital, the more you must eliminate frictional drag.
For mainlanders buying the S&P and Nasdaq, the main path is QDII.
Alipay and your bank are the easiest starting points.
OTC QDII suits long-term dollar-cost averaging.
Onshore-listed QDII ETFs suit investors who can read premiums.
Hong Kong bank cards can be opened, but don't mythologize them. They're an account tool, not a magic tunnel around the rules.
Full-equity RWA is worth watching, but it is not yet the main path for mainlanders buying US indices.
The most important thing for ordinary investors is not to find the so-called highest-return channel. It is to find a path that is compliant, stable, and executable for the long run.
Disclaimer: This article is personal research and investment-knowledge sharing only. It does not constitute investment, legal, or tax advice. Markets carry risk; trade with caution. Policies and product rules may change — please rely on regulators, banks, brokers, fund companies, and professional advisors for specific execution.