The 30 percent plunge in the Shanghai composite has China's government stepping in to orchestrate a $19 billion stock purchase program to prevent a full-blown crash.
More than half of China's listed companies were halted to mitigate the selloff, as more than just local traders worry that the momentum that boosted Chinese stocks to seven-year highs might just be starting to reverse to something much worse.
And while retail investors who account for more than 80 percent of the trading on China's equity market scramble to stop the losses, the manager behind the largest fund most exposed on a dollar basis to China says it's not time for U.S. investors to panic.
"The biggest question you have to ask is whether this is a panic over a short-term liquidity freeze or a larger sign the country faces severe financial risk," said Fidelity's China region fund manager Robert Bao. "Our analysis is that it's the former and simply temporary." ( Tweet This)
In fact, despite suffering what Bao calls an "unwarranted selloff" over the last month, all of the funds with extreme Chinese exposure are still positive year to date.