While the government may want more Americans to buy Chinese stocks, it takes a lot of work to ensure you're getting a good operation. Many companies are still influenced by the government, and transparency can be hard to come by, Lau said.
Many companies are family owned and have subsidiaries set up that benefit the majority shareholder, to the minority owners' detriment. Investors need to look at who owns a company and whether or not they have a positive track record of value creation.
Companies listed on the Hong Kong and New York stock exchanges tend to have higher reporting standards, but they're not immune from shady business dealings either, he said.
Read MoreChina worries weigh on Asia stocks, US futures
Also pay careful attention to free cash flow. While the economy may be slowing, there are companies that can still grow, but only if they have cash to work with.
That said, understand the objectives of the business. Some companies are only growing to benefit that main shareholder. Make sure the business is reinvesting cash into things like more stores, more plants and other initiatives that truly benefit the business. Sustainable earnings and high-quality management are also critical, Rogers said.
China is still full of risks—the economic slowdown story is not disappearing anytime soon—and Chinese companies will remain volatile. That doesn't mean you should panic, though. If you believe the Chinese growth story and can stay invested over the long term, then there's money to be made.
At some point, even stocks on the Shanghai Stock Exchange will become attractive to the everyday investor. "We're beginning to look at it now," Rogers said. "As these markets stabilize and recover and as we do more research, we'll find good companies."
—By Bryan Boryzkowski, special to CNBC.com