The downturn in China's stock market is not a very real risk to the global markets, Asian equities expert Simon Male said Friday.
The Shanghai Composite index plunged 7 percent on Friday, suffering its biggest one-day loss in five months. However, the market is still up almost 30 percent for the year.
Any risk of global contagion would be through multinational companies doing business in China, said Male, the head of Asian equities for Auerbach Grayson.
However, because only 7 percent of Chinese individuals are set up to trade stocks, the market gains and speculations have been largely in the hands of a few very wealthy investors, he noted.
So while a complete market meltdown could wipe out those investors, there would only be a limited impact in terms of overall economic consumption, with the impact on luxury consumption.
Because of that luxury concentration, Male thinks the multinationals are not really at risk.
"What we see in China is going to remain very much a Chinese domestic contained phenomenon," he said in an interview with CNBC's "Closing Bell."
For Jonathan Brodsky, managing director, portfolio manager and research analyst at Advisory Research, a prolonged decline in the market could be "somewhat of a risk" for China's retail investors and the country's overall economy.
"The government has somewhat of a tacit involvement in this, supporting the markets and trying to create the wealth effect and if you see a prolonged decline, the issue is do you see an impact on the real economy."