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Dalio 'wrong' on China; selloff an opportunity, 2 investors say

Negative sentiment on Chinese stocks compounded this week by hedge fund manager Ray Dalio masks "lots of opportunities" in pockets of the world's second-largest economy, two investors said Thursday.

"The more pessimistic everyone else is, the more opportunities there are to find misvalued, undervalued companies," said Jim Oberweis, president and portfolio manager at Oberweis Asset Management, in a CNBC "Power Lunch" interview.

While the Chinese economy has slowed down, investors are "premature" in thinking opportunities have dried up, added Karyn Cavanaugh, senior market strategist at Voya Investment Management.

Read MoreChina crash is a 'canary in a coal mine': Strategist

In an investor letter obtained by CNBC, longtime China bull Ray Dalio's Bridgewater Associates noted that risk in China has increased and a popped stock bubble brought "significant losses for households." The firm added that Chinese policy has supported short-term prices but would be "slightly negative" for Chinese equity markets moving forward.

Ray Dalio, Bridgewater Associates
Scott Mlyn | CNBC
Ray Dalio, Bridgewater Associates

The Wall Street Journal on Wednesday generated headlines with a quote from the letter that "there are now no safe places to invest and the environment looks riskier."

"Bridgewater's view that China faces debt and economic restructuring challenges, and that it has the resources and the capable leaders to manage these challenges, remains the same," Bridgewater said in a statement to CNBC on Thursday.

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China's main stock index recently shed 30 percent after surging more than 150 percent in about a year. In response, the government imposed a series of restrictions, including a ban on new initial public offerings and a measure preventing large stakeholders from selling their shares.

Another market watcher on Thursday went beyond Bridgewater's sentiment, warning that more problems could linger around the corner.

"I think this is the canary in the coal mine of more weakness in China," said RBC Capital Markets' Jonathan Golub in a CNBC "Squawk Box" interview.

—CNBC's Tom DiChristopher contributed to this report.