In our insight piece this month, Zhixin Shu, puts the case that the change in currency policy is not as bad as it seems and that there is a case for long term value emerging in China.
Squall alert! After navigating the Greek crisis in July, investors in global markets were looking forward to a stretch of smoother sailing in August before hitting the next turbulence of the Fed’s rate decision in September. The quiet was abruptly ended by the turmoil in the world equities markets. Stock prices fell following China’s currency depreciation on August 11. China’s stock market hysteria and the government’s ineffective efforts to contain it were deleterious enough. The depreciation exacerbated fears about the state of the world’s second largest economy and the untoward impact it could have on the global economy.