Investors: Don't Give Up on Investing in China

Turmoil in China has been all over the financial news, but the volatile market is too big to ignore.

china stock market
(Image credit: Illustration by Chris Gash)

The news from Chinese financial markets in recent months certainly has succeeded in grabbing headlines. China Evergrande (EGRNY), a domestic property giant with a towering $300 billion of liabilities, teeters on the edge of bankruptcy. A Chinese government crackdown on tech companies crushed the valuations of widely held large-capitalization growth stocks such as Alibaba (BABA) and Tencent (TCEHY). Beijing abruptly restricted the weekly hours that young people could spend playing video games and took an axe to the fast-expanding for-profit education industry, eviscerating the market value of several listed tutoring securities overnight.

It's little wonder that investors worry about the turmoil spreading to the world’s other financial markets – or about whether to invest in the humongous Chinese market at all.

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Contributing Writer, Kiplinger's Personal Finance