This study aims to explore early reading comprehension in Chinese-speaking children with hearing loss (HL) by examining character recognition and linguistic comprehension. Twenty-five children with HL received three measures relevant to character reading: phonological awareness (PA), morphological awareness (MA), and character recognition; two linguistic-comprehension measures: receptive vocabulary knowledge and listening comprehension; and one reading comprehension measure. Three demographic variables pertinent to children with HL were also taken into account. The results showed that the degree of HL was significantly related to reading comprehension, receptive vocabulary knowledge, and listening comprehension, the latter two of which were further correlated with the type of hearing device; however, the hearing age was associated with neither of the measures. MA made a unique contribution to character reading in the presence of PA, but the reverse was not true. Linguistic comprehension significantly accounted for additional variance in reading comprehension over and above character recognition but not vice versa. A further analysis controlling for character recognition revealed that receptive vocabulary knowledge was more contributive to early reading comprehension than was listening comprehension. The results of the current investigation have potential to inform educational practice in teaching and/or intervening Chinese children with HL regarding their reading skills.