Mark Mobius says investors should hold off from buying developing nation shares as a rebound from six-year lows will be shortlived amid widening price swings.

“We have a little bit to go before we see stabilization, but volatility will remain,” Mobius, chairman of the emerging markets group at Franklin Templeton Investments, said in an interview with Bloomberg Television. “We are sitting on cash.”

The MSCI Emerging Markets Index climbed 2.5 percent at 12:10 p.m in New York, halting a seven-day, 11 percent decline. At least fifteen of the 30 largest equity markets among emerging economies have extended losses from their peaks to 20 percent or more, fulfilling traders’ definition of a bear market.

A gauge of 50-day volatility on the index climbed to its highest level since 2012 on Tuesday.

Investors should wait for markets to stabilize instead of rushing to buy, Mobius said, adding that Chinese policy makers could use monetary and fiscal policies, including easing banks’ reserve requirements, to boost equities.

“If regulators allow banks to put money into markets, then there’s quite a message,” Mobius said.

China cut interest rates for the fifth time since November and lowered the amount of cash banks must set aside hours after its stock market closed on Tuesday. The one-year lending rate will drop by 25 basis points to 4.6 percent, while the required reserve ratio will be lowered by 50 basis points for all banks to cover liquidity gaps, the central bank said.

Economic Concerns

The Shanghai Composite Index sank 7.6 percent on Tuesday, extending its worst four-day loss since 1996, amid concern policy makers have abandoned market support measures.

China’s shock devaluation of the yuan this month has sent convulsions through financial markets, fueling speculation that the slowdown in the world’s second-largest economy may be deeper than previously thought. The rout has driven gauges of volatility to multi-year highs and sent bond yields tumbling as investors wound back bets that the Federal Reserve will begin raising interest-rates as soon as next month.