Is it safe to invest in China?

For a foreign investor, honestly, no.
Here are some reasons:
1. As of Sept 2015, stocks are highly overvalued. Average P/E is somewhere north of 45 on Shanghai and even higher on Shenzhen.  Yet many of these companies show little growth, and still many others work in dying/low-growth industries such as mining or materials.
2. Companies are not required to be transparent with respect to financials.
3. The market itself is illiquid. On any given day, any stock can be a) halted by unknown/new stock-specific controls that forbid you from selling, b) halted by market-wide controls, c) taken down by market-wide crash generated by external factors, such as a highly sentiment driven retail investor population with near zero experience in trading and all (or most) looking for the next get-rich-quick stock.
That’s assuming you can read/understand Chinese well enough to read reports and analysis



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