For small investors thinking about looking for the bottom of China's market, Morningstar has direct advice: Don't.  "Small investors should do nothing; and I don't want to be glib," Morningstar senior fund analyst Bill Rocco said. "We're not big believers in small investors slicing and dicing their asset exposure.''  Read MoreInvestors rattled over China, Greece fears  Instead, investors thinking about China should focus on more general international funds and emerging markets funds, which are likely to include a lot of Chinese equities, Rocco said. But these funds are also free to pass on mediocre Chinese companies in favor of businesses elsewhere in the region that have better prospects or are less overvalued, he said.  Morningstar's top emerging-markets fund picks include American Funds New World (NEWFX), Harding Loevner Emerging Markets (HLEMX-O) and Vanguard's Emerging Markets (VEIEX). Warier investors may pick the IShares MSCI Emerging Markets Minimum Volatility fund (EEMV), which blends the lowest fees in the group with low volatility.  Morningstar cautions, however, that low volatility doesn't mean low risk, since the fund remains heavily exposed to China. The fund is down less than 1 percent for the year through yesterday, with only one of its top 10 holdings being in a mainland China-based company.  The Chinese government interferes so much in mainland markets like Shanghai and Shenzhen that they are not fully rational, Morningstar senior analyst Patricia Oey said. She speculated that some of the recent inflows may actually be bound for markets like Hong Kong that are less-volatile ways to bet on China's long-term growth.  "Think about how much China exposure you already have,'' Rocco said. "Most people are better off getting their China exposure—and they'll get plenty—through an emerging markets fund.''  —By Tim Mullaney, special to CNBC.com
Investors poured $4.3B in Chinese ETF and mutual funds last week despite the volatile marketplace. Some see this as a buying opportunity.