Traders work on the floor of the New York Stock Exchange (NYSE) February 11, 2016.[Photo/Agencies]

Xiao Lei, a senior market observer, also believes this round of global market falls had little to do with the slowing Chinese economy or the yuan's recent depreciation.

"The Western markets swings were mainly caused by persistently low crude oil prices, which forced oil producing countries to repatriate their sovereign wealth funds from overseas stock markets to ease domestic money strain," said Xiao.

The withdrawing of the huge amount of capital also added pressure on Western banks and thus intensified the stock market swings, according to him.

The global declines this week raised concerns that the Chinese shares could drop when the market opens on Monday morning.