Jupiter Asset Management's vice chairman Edward Bonham Carter has said he expects a 5%-10% setback in the Chinese stockmarket and would invest in the region again following the dip.
The Shanghai Composite index is up 8.7% since the start of the year and 14.6% over 12 months, but some fear its strong performance will falter.
Speaking to Bloomberg, Bonham Carter (pictured) said: "Markets have had a strong run but one would assume, not just in China, that one should expect a setback and there is nothing wrong in that, it would be quite healthy.
"I would buy back after a correction, if the fundamentals are still in place then buying China on a setback would make sense. The setback could be at least 5%-10%.
"If you look at the whole Chinese economy then there are pockets of high debt but there is a healthy growth rate and the consumer is underleveraged. Banking assets look high and reserves need to go up, but the Chinese economy looks in reasonable health."
Meanwhile, Bonham Carter is backing Federal Reserve chair Janet Yellen for a second term at the helm of the central bank.
Yellen has been Fed chairman since 2014 and will end her term in February 2018. She had been expected to accept a second term, but this has been thrown into doubt following the election of US President Donald Trump, who has been critical of her monetary policy actions.
Possible replacements include Kevin Warsh and current Fed governor Jerome Powell.
"I would like Yellen to have a second term, I do not think it is probable or likely, but I think she has done a good job," said Bonham Carter.
He added the market "could take" further rate hikes in the US next year, having already weathered two rate hikes in 2017.
"Equity markets can take a bit of tightening, it would show a normalisation of the economy and be good for corporate earnings and equities," he said.
"It would have implications for bond markets but that seems to have been factored into prices. If the economy continues to strengthens in the US then we can expect a couple of hikes next year."
Leader of People's Party
Listing two global equities strategies
Aims to encourage competition in industry
Markets went into freefall
Issued 50,000 new shares