Don't catch a falling knife.
I choose the ladder, because with china stocks, you don't even know if these companies are real. Normally that phrase of buying with blood in the streets makes sense, however generally that applies to where everyone believe there is a real company behind the stock symbol. Right now the perception on china is these are not real companies, or the positives have been greatly overstated. Now whether you believe that or not is not really important, it is far more important what the market believes, and market is believing the shorts. I'm not even saying they are right, but if this is a new risk to holding in the sector then valuations need to come waaaaaaaaaaaay down, because there is no defense or DD against this risk a driveby short attack whether right or wrong takes the stock down 30% in a matter of hours, and they can come at any point and at anytime. That might adversely affect valuations for a very long time. Me personally I really don't know what to believe on China stocks all I know is either the risk went up or the reward went down, either way it is making those stock far less attractive to me at this point. I wish the china longs the best of luck though. All is just my opinion, and I could always be wrong though