This despite threats of arrests to "malicious sellers", "an $800B worth of public and private money enlisted to prop up its wobbly stock markets" (10% of its GDP), and government intervention on at least 40 different occasions in the past month:
http://uk.mobile.reuters.com/article/idUKKCN0PX0AU20150723?i...
https://en.wikipedia.org/wiki/Nasdaq_Composite#/media/File:N...
The only downside is that it took 15 years for the NASDAQ to recover to that frothy level. I do not know enough about China's markets to make any predictions though.
The VC market for tech companies basically died after the NASDAQ crash in 2000 for a good 3 to 6 years (I do not know precise times as it was a little before my time.) I think that is because a lot of VC's lost liquidity and couldn't make further on investments in their existing porfolio, there was very little M&A action, and there was no real IPO market. Thus these bubbles, even if they do not wipe everyone out can have serious long term effects for segments of the economy.
This is likely more serious than the NASDAQ because it is the general market rather than a tech specialty market -- but take all this with a grain of salt as I knowing nothing really about specifically China's situation, just making analogies with what happened in North America.