Chinese investors have lost confidence in the Stock market there

"The government wants to revive the stock market, however investors have already lost faith. Even if the market shows positive signs, it will no longer gain back much confidence and attention like before," Xue, who is in his mid-20s, told CNBC.
The benchmark Shanghai Composite plummeted as much as 8 percent in early trade, sliding further into bear market territory, before closing down 6 percent The index is down over 30 percent since hitting a seven-year peak of 5,166.35 on June 12. Meanwhile, China's securities regulator warned of a "panic sentiment" gripping the market, that was causing "irrational selling".

 

Responding to the market's wild swings early on Wednesday, Xue said, "I feel numb. It has become a norm for me. "
end partial quote from:

China's retail investors give up hope as exodus intensifies 

It appears sort of like what happened when the U.S. market crashed last big between 2007 and 2009 when it went down to around 6900 then and then slowly recovered up to about 18,000 average as of late (even though it is in the mid 17,000s at present.

But, I think the point is it appears the middle class investor just lost confidence in the Chinese Stock market there and might withdraw their money and keep their money away from the market in the future which is what has happened here where only people who can afford to live without the money they invest still invest in the stock market because of ongoing volatility. And even then often only invest in dividend bearing stocks to hedge their bets and to make it financially worthwhile ongoing.