NEW YORK (Bloomberg) — China will lead the world in growth for the foreseeable future yet remain a challenging place for investors, said Burton Malkiel, author of "A Random Walk Down Wall Street".

"Investors who are eager to profit from China's continued growth may find it to be a complicated, risky market," Malkiel, a Princeton University economics professor, said at a CFA Institute conference in Vancouver yesterday.

Restrictions on foreign ownership of stock and multiple markets for Chinese equities can result in mispricing and volatility, Malkiel said. In addition, government ownership of equities poses problems in corporate governance, he said.

Investors in China should employ a mixed approach that entails buying Chinese stocks and those of global companies that derive revenue from the nation's "economic boom", he said. China will continue to be the fastest-growing major economy because of government investment in roads, railways and other infrastructure, he said. Also, many of its middle and western regions haven't yet been developed.

China, the world's most populous nation and fourth largest economy, will become the largest economy within 20 years, he said. Still, the country will face environmental problems, corruption, inequality and other obstacles, he said.