Stock market plunge in China may have "profound impact" on economy

After plunging 8.5 percent on Monday, there could be more losses to come for the Chinese stock market. From Bloomberg:

Chinese stocks will decline by an additional 14 percent over the next three weeks as the market demonstrates a trading pattern that mimics that of the U.S. crash in 1929, according to Tom DeMark, who predicted the bottom of the Shanghai Composite Index in 2013.

Bank of America strategist David Cui also thinks that there could be more falls for Chinese stocks. This would the result of excessive leverage, which "means relentless selling pressure", and that "A-shares ex. banks could at least halve".

Cui concluded that "what just happened in the A-share market will likely have profound impact on China’s economy and financial system".