More than a month after Chinese regulators began rolling out measures to stem a rout in mainland equities, markets remain underwater. But that's not necessarily a bad thing, experts say.
Since regulators first started supporting the market on June 27—in the form of a surprise interest rate cute by the People's Bank of China—Shenzhen and Shanghai shares have tumbled 18 and 15 percent respectively.
"In a way, the failure of these circuit breakers, the ongoing market correction, is a good sign. I'd be worried if these support acts caused the market to rebound further into bubble territory," Chong Yoon Chou, investment director at Aberdeen Asset Management Asia, told CNBC on Tuesday.
"I'd be concerned that the higher the market goes, the harder it crashes."
Those fears are shared by Beijing too, according to market players. The government's efforts to staunch the equity market correction that started in mid-June have been aimed to inject stability, indicating a tolerance for losses.
"The government does not wish to create another speculative bubble; its objective is not for the Shanghai index to move back to 5,000 points, but rather to stabilize the market at 3,500 or 4,000 points so that the normalization process can unfold," noted David Gaud, senior fund manager and global investment specialist at Edmond de Rothschild Asset Management, in a Tuesday report.
Because that recovery process will take time, he warns that rebounds like Tuesday's 3.7 percent rally are excessive.
"The measures implemented over the past few weeks are not able to generate a massive and sudden rise - which is not what is needed," Gaud added.
Indeed, the faltering nature of the recovery is an indication the market is maturing, Chong said: "This is a sign that the country is growing, they are trying out different things. During the Asian Financial Crisis, we also did little circuit breakers, we stopped short selling - it didn't work, we moved on, and so will China."