It’s Time for Investors to Reevaluate Their China Exposures (Investments & Wealth Monitor)

First, investors can sell down their entire China exposure. As a practical matter, exiting publicly traded Chinese stocks or private investments, such as a factory or a private equity investment, will most certainly be protracted as sellers try to find reasonable prices in a challenged economic environment.
A second option is for investors to write down the value of their Chinese investments but to still retain the assets on their (financial) books and records. The investor would not add any material new capital to grow or enhance the investments.Writing down an equity portfolio would lead to actual recorded market-to-market losses. Choosing to write down the value of the stocks rather than selling the position down to zero means the investor retains some optionality if the positions rebound.
A third option is for an investor to both hold and grow its China exposure with new capital. In this case, an investor would look to capitalize on low valuations and market weakness to expand its presence in China.