Investors are shocked by the Chinese stocks. Where to find opportunities.

It has been a difficult year for investors in China, especially those who forget that it is still a communist nation with a government that can act unilaterally and change direction quickly and relentlessly. After some surprising and highly anti-capitalist moves in recent months, Chinese stocks are plummeting. The Chinese market has fallen 20% in the past six months, while some of the biggest names have fallen by more than 40%. Has China become uninvestable? No, but it’s gotten a lot more complicated.

US investors have largely…