The Shanghai Composite is down more than 20 percent in the last two-months as investors worry about an economic slowdown in China.
Despite the growth concerns, Bernie Williams, chief investment officer of USAA Investment Solutions, tells CNBC's "Power Lunch" on Monday the outlook for China is still positive longer-term.
"The consumer class is likely to continue to grow and gain wealth over time. This means China can still be an attractive place for companies to invest," Williams said.
But Williams believes China has to restore confidence in the market.
"Chinese authorities have tried to stave off the drop by halting trades and placing bans on the sale of many stocks. When a government imposes such measures, it traps investors in bad investments and chisels away confidence in an already declining market," Williams said.
The Shanghai Composite surged 5 percent during trading.