CNBC reports that UBS Global Wealth Management’s Kelvin Tay warns that investors looking for bargains in the Chinese market should beware as stocks there could see further losses.

“I think there’s actually more room for this to actually run,” Tay, regional chief investment officer at the firm. I certainly don’t think this is the bottom,” - Kelvin Tay said.

Following a rout that started late last week and accelerated as the Hang Seng index in Hong Kong plunged more than 8% in just two days, China’s markets are now among the worst-performing in Asia-Pacific year to date.

Tay said many institutional funds are currently reassessing risks as Chinese regulations target industries such as technology and private education. He explained the process is likely to take a few weeks before funds come to a final decision on whether they should liquidate or accumulate more stocks in the Chinese markets.

“I think the decision is probably going to sway towards the liquidating side,” Tay warned. “I don’t think this is actually time to bottom fish.”

Tay said Beijing’s regulatory crackdown coincides with a “window of opportunity” as the global economy bounces back from the pandemic.