The frightening pace of declines in China's benchmark stock index is not over, according to several market analysts, with predictions that the market could half in value over the next six to nine months.
The Shanghai Composite index - still in its relative infancy compared to its U.S. counterparts - screamed higher by 54 percent up until the middle of June. After hitting a peak this year of 5,166 points the benchmark has since tanked 38 percent in 57 days, erasing all the gains for 2015.
But there's more to come, according to Quentin Baker, fixed income derivatives trader at Mako Financial Markets, who has been focusing on the Chinese index in his latest technical analysis.
"It is calling for a significant bear move even at current levels despite the selloff that we've seen over the last several weeks. The levels we are talking about are 1,500 for the Shanghai Composite which is another 50 percent decline from here," he told CNBC Wednesday.
Even government intervention by the Chinese central bank won't affect this route downwards, according to Baker, who believes that the "market will win" and "will go where it wants to go."
Luis Costa, head of CEEMEA FX and rates strategy at Citi, said that the index is more of a "mom and pop" investment vehicle within China and urgently needed the support of professional investors to provide liquidity.
The Shanghai market is currently moving completely independent of economic fundamentals in China, according to Laurence Bensafi, deputy head of emerging market equities at RBC Global Asset Management.
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