American economist and writer Burton Malkiel said on Tuesday that he is worried that all the talk about liberalization by the Chinese government will never come to fruition.
"You can't control markets," the Wealthfront chief investment officer told CNBC's "Squawk on the Street." "And what worries me is there's a lot of talk about liberalization, but when it comes right down to it, there is a feeling that you've got to intervene, and in fact with free markets, you can't control the stock market, and that's a lesson I'm not sure the Chinese government has learned."
Malkiel is well known as the author of "A Random Walk Down Wall Street."
He said that the Chinese market is inherently unstable since 90 percent of it is made up of individual investors who are constantly moving from one stock to another.
"What the Chinese stock market needs is international, institutional people coming in and putting a little bit of professionalism into the market," he said. "But what institution wants to get into the market if they think that the government can say, 'Well you can't sell.' That is precisely what the government did, and it's counterproductive."