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CommentJanuary 25 2016

Chinese regulators and foreign investors need to meet in the middle

Worries over China's economy would abate if market authorities communicated better and avoided overzealous interventions. And, for their part, investors should keep their cool when faced with less-than-stellar growth figures.
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China has been in the eye of the financial market storm since mid-2015. The country's onshore stock market floored in July last year, when it lost more than one-third of its value in just 30 days, and again in January 2016. The currency has also been volatile. The Chinese government devalued the renminbi in a surprise move in August 2015, leading to a 5% fall against the dollar.

Investors’ often amplified fears about China’s economic slowdown are part of the problem. But Chinese regulators also need to learn how to deal with investors, especially foreign ones, as they work towards financial market liberalisation.

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