(0:45) - Is It Time To Invest In China Or Still Too Risky?(4:00) - The Current State of China Market(10:10) - Tracey’s Top Stock Picks: Value Or Trap?(19:30) - Big Takeaways On China: BIDU, BABA, JD, TCEHY, SINA Podcast@Zacks.comWelcome to Episode #110 of the Value Investor PodcastEvery week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.The Chinese stock market has fallen to 4-year lows and the Chinese stocks that trade on the US exchanges have also been hit in 2018 with some falling over 40%.Investors are fleeing the Chinese stocks.Does that mean there’s a buying opportunity for value investors in Chinese stocks?China 2017 Versus China 2018In October 2017, Tracey did a Market Edge Podcast called “Should Investors Buy China’s FANG Stocks?”.She looked at five of the largest Internet and social media stocks.Now, a year later, she looked at the same five companies again.Back in October 2017, she was optimistic about investing in China for the first time in years for the following 3 reasons:1. The Chinese economy appeared to be rebounding2. The “Chosen” Chinese companies were backed by the government3. Transparency had improved with publicly traded companiesDid these turn out to be correct assumptions?Value Stocks Versus Value TrapsA stock could be cheap and have value fundamentals and still be a trap.A value trap usually involves falling earnings estimates whereas a true value stock would still see rising earnings estimates.Are the Chinese FANG Stocks Values or Value Traps?1. Baidu BIDU was trading with a forward P/E of 35 back in October 2017 but is now trading with a P/E of just 17.8. It also has a Price-to-Book ratio of just 3.0. That’s pretty cheap. Shares are down about 10% year-to-date. Are the earnings moving in the right direction to make it a true value and not a trap?2. Alibaba BABA has fallen 14.7% year-to-date. It’s P/E is now 39, down from its 2014 IPO where it was 66. That’s cheaper, but not really “cheap.” What’s going on with its earnings estimates though?3. JD.com JD has fallen about 40% year-to-date yet it’s not really that cheap. It has a forward P/E of 89 but if you look at the price-to-sales ratio, which is just 0.6, you might have a good argument that the shares are undervalued. Are earnings estimates headed up, or down?4. Tencent TCEHY has fallen 25% in 2018. The “Facebook of China” still doesn’t look like a deal, however, as it has a forward P/E of 33. Should growth investors still be buying?5. Sina SINA has plunged 39% year-to-date. It has a forward P/E of 20.4 and a Price-to-book ratio of just 1.3. A P/B ratio under 3.0 usually indicates value. It appears that there’s some value there then. But do the earnings estimates match up for it to be a value stock, and not a value trap?What else should you know about investing in Chinese stocks?Tune into this week’s podcast to find out.Looking for Stocks with Skyrocketing Upside?Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.See the pot trades we're targeting>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report JD.com, Inc. (JD): Free Stock Analysis Report Sina Corporation (SINA): Free Stock Analysis Report Baidu, Inc. (BIDU): Free Stock Analysis Report Tencent Holding Ltd. (TCEHY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research