Direct individual purchase of stock by foreigners in Chinese companies is prohibited by Chinese law. That doesn't mean that you can't invest in Chinese companies or profit from Chinese economic growth, however. There is a number of indirect investment methods that can help you profit from growth in the Chinese market. One is to buy stock in an institution that has large holdings of Chinese stock. Another is to invest in a mutual fund that focuses on Chinese stock.
Buy Chinese B class shares or Hong Kong H class shares. Contact your stock broker to purchase shares in listed companies that invest heavily in these shares. Hong Kong H class shares are shares of companies incorporated in mainland China but approved for listing on the Hong Kong index. Chinese B class shares are shares specifically set aside for purchase by foreign institutional investors. They are denominated in renminbi but listed on the Shanghai exchange in U.S. dollars.
Buy mutual funds or exchange-traded funds, or ETFs, through your broker. These funds are primarily or completely invested in Chinese class B shares or Hong Kong class H shares. According to TheStreet.com, these funds have not only closely matched the growth patterns of their underlying securities, they are among the highest-performing funds available.
Consult your broker about possible emerging investment opportunities. Rules and regulations on Chinese stock investing evolve very quickly and there might be new ways to invest in Chinese stocks other than indirect investing.