In the short term, there may be more pain for China, but longer term there are values to be found in its stock market, China investor Hayes Miller said on Friday.
The Shanghai Composite has rallied the past two days, after a month-long rout that saw stocks drop 30 percent. However, the benchmark index is still up 90 percent in the past 12 months.
On Thursday, James Chanos, who runs hedge fund Kynikos Associates, warned that there is more pain ahead for the country. He told The Wall Street Journal that the Chinese economy has been on a five-year path downward and he expects that to continue. He's maintaining his bearish position on China's market.
Miller believes that, in the short-term, Chanos has a point.
"I think that there is perhaps another shoe to drop here. It has been very rare in the past that a country has been able to actually instigate some sort of management of its stock market," the head of global multi-asset North America for Baring Asset Management said in an interview with CNBC's "Power Lunch."
The Chinese government instituted measures such as barring state-owned companies from selling their shares in an effort to stop the recent rout.
However, long term, if "you look at the fundamentals and you look at the economic story, you look at the current valuations, and you look at earnings growth and you look at development in productivity levels, I think that we're at a price that you could call a clearing price for the market," said Miller, who is currently overweight China.
"There are emerging values that you want to go searching for."
His comments echoed those of investment guru Mark Mobius, executive chairman at Templeton Emerging Markets Group, who said he believes the violent pullback has nearly run its course. He's now looking for value in the market.