China stocks cheap, but risks may not be fully priced in yet

CHINA-focused stocks have been sold down significantly in recent weeks and are now looking relatively cheap. But analysts said there is still too much regulatory uncertainty for investors to start hunting for bargains.

Said OCBC's executive director of investment strategy Vasu Menon: "It may be too soon for investors to 'bottom-fish' and buy aggressively, even though the stocks that were badly affected by concerns over regulatory tightening have rebounded and regained some lost ground."

The Chinese government recently announced a series of regulatory changes to tackle social and economic problems, with negative significant impact on technology, education and property companies. And the US government has made moves affecting US-listed companies whose bases of operations are predominantly in China.