Rising regulatory risks in China mean investors should avoid investing in China or Chinese companies, Credit Suisse CIO Jack Siu told CNBC.

Uncertainty over regulatory policy will pose risks for investors for another 12 to 18 months, Siu predicts. He recommends that owners of shares in U.S.-listed Chinese companies diversify their portfolios.

If the company’s shares are also listed on the Hong Kong exchange, he suggests switching to them, as it reduces the risk of delisting. Chinese companies are leaving the US The Chinese ADR market came under pressure when investors were spooked by Beijing’s regulatory campaign affecting a range of sectors from technology to education. ADRs are American Depositary Receipts that act as intermediaries for shares in foreign companies listing in the US.

Many of the companies affected by Chinese regulators are listed on U.S. exchanges. For example, Chinese cab service Didi said last week that it would delist from the New York Stock Exchange and instead list its shares on the Hong Kong exchange. Siu warns that regulatory harassment will continue. He cited a Chinese publication indicating that Chinese funds will be forced to phase out foreign stocks.

At the same time, in the US, the Securities and Exchange Commission (SEC) has set a list of requirements, failure to fulfill which will result in a company’s delisting from US exchanges. In recent years, a growing number of Chinese companies listed on U.S. exchanges have pursued a second listing on the Hong Kong exchange. Among them are online retailers Alibaba and JD.com and social network Weibo.

It is not yet time to invest in China Siu warned that uncertainty of further regulatory changes, especially in “strategic sectors”, could continue until March next year. In addition, analysts have yet to update their earnings forecasts for Chinese companies, and funds have yet to return to the Chinese market. For those who do decide to invest in the Middle Kingdom, Siu recommends staying within government-backed sectors. He cited electric cars and renewable energy as examples.