Power Play: Cautious Case for Investing in China

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China is on fire, with the Shanghai Composite up 22 percent this year and the Hang Seng up 15 percent.

But before you rush out to buy Chinese stocks, a word of caution from Stephen Freedman, senior investment strategist at UBS Wealth Management.

Emerging markets is the "only block with an underweight. It's not really a bearish outlook, but an offset of overweight in the U.S. and the euro zone," Freedman told CNBC's "Power Lunch" on Thursday.

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He believes China will see weaker growth this year than in 2014. It is "a controlled deceleration by the government. The economy may grow below the target of 7 percent," Freedman said.

The Shanghai Composite fell about one percent on Thursday, while the Hang Seng rose nearly 3-percent.