He also warned that the Chinese economy had accumulated a whole array of problems that will cause concern among investors throughout the year and even endanger the world economy.
"The beginning of this year indicates that the deterioration in the dynamics of economic growth in China is becoming one of the key risks to the global economy," Lisovolik pointed out.
The world’s second-largest stock market (#China) in turmoil: 12% accumulated stock decrease in 2016 (CSI 300). pic.twitter.com/sEdHTANbVS
— V. Pavón-Villamayor (@pavonvillamayor) 7 января 2016
He was echoed by experts from the independent economic research consultancy Gavekal Dragonomics, who at the same time remained optimistic about the future of China's stock market.
"The depreciation of the yuan caused fears of a major devaluation that China may stage in order to spend to support economic growth. The fears were exacerbated by the fall of the Chinese market, but we do not believe in the feasibility of these fears," they said.
Gazprombank's chief economic forecasting expert Yegor Susin, for his part, claimed that the Chinese stock market turmoil was triggered by the country's economic slowdown and the current ban on share sales by major shareholders in China.
Last Thursday's seven percent fall at the Shanghai and Shenzhen stock exchanges triggered the new Chinese stock market circuit-breaker mechanism for the second time this year, prompting shockwaves around the world. China's trade suspension was followed by a one percent stock market slide on Wall Street; European stock markets slumped by two percent late Thursday afternoon.
