"What's going on in China is a bit self-feeding, commodity prices are falling which is negative for China as an exporter and that's impinging on other investors' views on fundamental demand as China is also a big importer so the market grinds lower," Matthew Beesley, head of global equities at Henderson Global Investors, told CNBC's Worldwide Exchange on Monday.
"We've seen frenzy on the way up and frenzy on the way down and external investors don't quite know how to position themselves and really what the government is going to do in terms of support," he added.
Chinese stock markets have had a wild ride this year– with the benchmark Shanghai Composite stock index rising a hefty 60 percent in the first half of the year only to slide 30 percent since a June peak above 5,000 points.
Beijing meanwhile has stepped in with a number of measures in recent weeks to arrest the slide and, up until Monday's tumble, those steps appeared to help put a floor under the selling. Earlier this month, for instance, the Chinese Securities Regulator banned shareholders from selling large stakes in listed firms.
Following Monday's rout, the regulator said the Chinese government would increase its stock purchases in a bid to prop up the market and that the possibility of "malicious" shorting of stocks was being investigated, according to Dow Jones.
"I think the most interesting thing about today is that there was talk about China pulling back from supporting stocks," Peter Boockvar, chief market analyst at the Lindsey Group, told CNBC's "Squawk Box."
"The stock market is its own animal, just like the rally didn't reflect anything nor does the decline," he added.