More from the Jason Zweig column on China's stock market:
David Herro, lead manager of Oakmark International, a $6.2 billion mutual fund, says he and his team have visited China twice a year for the past 20 years. How much does he have invested there? "Zero," he says. "The government is still trying to pick winners and losers, and they've done a fairly horrible job at it." Before he will invest, he adds, "we want lower prices, and we want better corporate governance."
An alternative approach to investing in China's markets directly is owning high quality U.S. multinationals and relying on them to wisely deploy capital in high risk/high potential emerging markets.