Investors can focus on 3 areas amid China's regulatory uncertainty, says Fitch Solutions
Cedric Chehab of Fitch Solutions identifies three areas in the Chinese markets that are expected to see relatively less volatility.
Still, there are three areas in the Chinese markets that investors can focus on that may have less volatility, Chehab told CNBC's "Capital Connection.""Focus on those … companies and sectors that are leveraged to the economic recovery," he said, adding that they can give "some cover."
Next, investors can identify sectors that have come under less regulatory scrutiny by Beijing in the last few months or quarters, Chehab added.Finally, look at sectors that have been largely identified by the Chinese government as "not particularly important from a national security perspective."
"You have a bit of a tug-of-war in terms of what the government wants and what capital markets want to do," Chehab said. Read more: CNBC »
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