'Black Monday' one year on: China currency fears abate but debt levels flash warning signals

Less focus on renminbi depreciation

Daniel Flynn
clock • 3 min read

Investor sentiment towards China has improved during the 12 months since last August's 'Black Monday' sell-off, with renminbi depreciation no longer the focus of global angst, but concerns remain that high levels of debt-fuelled growth could be storing up problems for the future.

A rout from Chinese equities culminated on Monday 24 August 2015 with a 9% fall in the value of the Shanghai Composite index, with contagion spreading across global markets. The sell-off was fuelled by a move by China's central bank to change the market mechanism for setting the renminbi's daily fix against the dollar on 11 August 2015, leading to a 3% devaluation against the greenback. Mansfield Mok: Continued rise of China's tourism sector still a boon for investors Bearishness on the region led foreign investors to pull $700bn over 2015, despite the Shanghai Composite recovering...

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