The reverse merger China stocks were mostly scams, so I certainly agree with you regarding that niche .... but those were almost all microcaps and in aggregate didn't have the market cap of a single China large cap.
I think investors can be more discerning than to simply avoid any stock with substantial operations, sales or headquarters in China. Lots of excellent investments fall into that category, including most of the solar stocks and plenty of tech stocks. Not to mention many of the 100+ China ADRs that trade here, including BABA, the giant and highly sought after megacap IPO - the largest in history and currently followed by 42 analysts. Most of them rate it as "Buy" or "Strong Buy".
To paint all China stocks with the same brush is ill informed - but yes one has to be discerning, especially with the microcaps and reverse mergers.
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