A selloff in Chinese equities, as Beijing intensifies its regulatory clampdown, shouldn't cause an "existential crisis" among investors, according to JPMorgan Chase & Co.

"It's absolutely business as usual for investing in Chinese equities," said Gabriela Santos, a New York-based global market strategist at the bank's asset management unit. "The trick is not to see each thing that China says or does as an independent development. It's all a piece of a bigger puzzle."

Santos joins a small chorus of investors, including emerging-markets veteran Mark Mobius, sticking with Chinese equities despite a selloff that has erased about a third of the MSCI China Index's value in the past six months. Such losses are typical in China, according to Santos, and equities tend to rebound as much as 20 percent over the following six months.

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