People walk on a footbridge with an electronic stock ticker showing real time stock market indices at Lujiazhui Financial and Trade Zone in Shanghai, China, Thursday, July 9, 2015. (Chinatopix via AP)
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After almost a month of watching Chinese stocks in free fall, some U.S. fund managers are buying shares at what they consider distressed prices, though they predict continuing volatility – and perhaps more declines – ahead.The Shanghai Composite Index's sell-off took a break Thursday as government efforts to prop up the market pushed shares up 5.8 percent, the biggest one-day gain in six years.Reuters contacted several prominent mutual fund managers, including the $8.7 billion T Rowe Price Emerging Markets Stock fund, the $1 billion Columbia Global Equity Value fund, and the $76 million Morgan Stanley Global Opportunity fund, who all declined to comment.At the same time, fund managers like Wilson say the volatility and selloff is making the Chinese market more attractive for long-term investors, even if the market has not hit bottom yet.International funds, meanwhile, now have an average of 3.2 percent of assets invested in China, up from 2.2 percent in 2012, while U.S. large cap funds that own Chinese stocks have an average of 2 percent of assets in Hong Kong listed companies, up from 1.3 percent in 2012 .
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