Mirae Asset Global Investments' co-chief investment officer, Rahul Chadha, said investors are "obsessed with growth" when it comes to China.
As a result of this focus on growth, there are few industries with strong barriers to entry, Mr Chadha said.
"As an equity investor, you make money where there is growth, but where there is not too much competition," he said, "because when there is too much competition and three companies are fighting with each other to get bigger and bigger, nobody makes any money."
Mr Chadha said he would not invest in a market where there is no growth but, given the choice, he would take low growth and high barriers to entry over high growth and low barriers to entry.
"Growth alone may give you temporary happiness and gratification, but it doesn’t make you rich," he said.
A good example of a Chinese company with high barriers to entry is the internet firm Tencent, Mr Chadha said.
"They're a consumer franchise with 90 per cent of their 500 million users visiting every day and spending three hours on the website," he said.