Despite continued government intervention, China's Shanghai composite suffered its worst daily selloff in eight years to start the week.
That slide will only intensify if more investors start to lose faith in the government rescue measures already put in place, according to Evercore Macro Research analyst Donald Straszheim.
"There is a lot of stock that is still for sale," he said during an interview on CNBC's "Squawk on the Street." "That's why you have these down days if in fact Beijing is not intervening and buying stock."
After seeing stocks tumble more than 30 percent, Chinese banks propped up equity prices in early July while regulators halted trading for many companies and even banned selling shares of larger firms. But many have criticized the intervention, citing a heightened sense to sell before more companies are halted.
"On July 4, the Shanghai, Shenzhen markets stopped being markets and became a government operation," Straszheim said. "Investing in China right now I think is simply unsuitable for foreign investors."