Chinese stocks markets saw heavy selling pressure on Tuesday, with the mainland Shanghai Composite and Shanghai Shenzen indices closing over 6 per cent lower. The fall in Chinese markets weighed on other Asian markets as well.
Michael Every of Rabobank told NDTV that the stability seen in Chinese financial markets in recent weeks was entirely artificial. Selling picked up pace after benchmark indices fell below their crucial psychological levels of 4,000, he added. (Watch)
According to Mr Every, the government had earlier said that it would step in and support the market up to a certain threshold, which was understood to be 4,000 on the key indices.
If the government sticks to its pledge to buy markets all the way up to 4,000, then gradually markets will start edging back towards 4,000, he said.
However, China's policy to support markets near threshold levels is an expensive one and this will not lead them anywhere, Mr Every said.
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