It is time to avoid small caps and take profit in food stocks within the Chinese market, advised Erwin Sanft, head of China & Hong Kong research at BNP Paribas.
"Small and mid caps have had fantastic year. The huge boom have boosted these stocks. We have been a proponent of buying small and mid caps for last five years. But in the middle of this year, we changed tune and have been taking a more cautious approach," he said on CNBC's Protect Your Wealth.
As for the mainland's consumer food groups such as Yurun, Want Want China and Hegan International, they are ripe for profit-taking following their strong run.
"Food stocks by nature grow quite slowly, unlike (those in) retail, auto and internet, (which are) more discretionary, faster consumer growth stocks," Sanft said.