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Major China stock selloff likely a 'localized' issue that won't get in way of U.S. earnings

A major selloff of Chinese stocks stemming from Beijing's regulatory crackdown on private businesses in a variety of sectors, including technology and education, is likely a "localized" phenonemon, John Bilton, the head of global multi-asset strategy at J.P. Morgan Asset Management, told Bloomberg TV on Tuesday.

Bilton said fears may spread to the United States and Europe, where "investors who perhaps have got a little bit more ... nervousness to them may want to ... sit on their hands." But, he continued, "let's make no mistake: What you're seeing going on right now is a classic battle between earnings delivery, which is coming through strongly out of the U.S., strongly out of Europe, and then you're seeing a reminder of some of the regulatory issues that persist within China." 

All told, what's happening in China is causing some investors "around the globe to question their exposures, but by and large, it's not getting in the way of what's been an absolutely thumping earnings season coming out of U.S. stocks, and also out of Europe."