Last week signaled a black Friday for China's stock market as they dropped beneath the 5,000 score on Tuesday.

With their two biggest stock markets dropping to 6.4 percent for the Shanghai Composite Index and 5.9 percent on Shenzhen, the plummet caused the latter an accumulated 12.7 percent slump during the week. The closing bell, however, stopped the bleeding  while offloading of shares were halted during the last minutes of the trading. According to Forbes, analysts say, the retractions may have happened as an adjustment, but it could also mean the closing stages of China's bear market.

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In a statement made by hedge fund manager in Shanghai Dong Jun, he  said, "It's a do or die moment for all investors, if retail investors become skittish now, panic selling will continue next week."  Beijing is reportedly in dire need of options to keep their market on the positive side and have it moving upwards.

For the past years, Chinese officials have been the one taking credit for the stock market's soaring flight, and it is not an option to watch it crash like it pertains now, said reports. While the monetary stimulus may be an option, this is not seen as a 100 percent solution to their stock market problem.

In a previous report by the Economist, it is said that the Chinese stock market has often been compared to casinos and its comparative share prices habitually strays far from its correlation with their economic situation. CNBC reported that CIMB analyst Ben Bei said, "the ongoing trend of Chinese households reallocating their assets away from real estate and wealth management products and into equities will help sustain the rally in the medium term." He also noted that there are "peaking signals" that will eventually help in lifting Beijing's stock market and the enormous help of around 4 trillion yuan from investors will eventually increase the prices by as high as 40 percent.

The massive growth of Beijing's stock market is seen as uncontrolled, and authorities are having a hard time taking control of its flow, said reports. Shanghai is listed as third largest exchange, next to Nasdaq's $7 trillion, and New York Stock Exchange's $20 trillion.

Tagsstock market, panic selling, stock exchange