Global stock markets may have recovered from the Brexit shock, but another one awaits them—that of China devaluating its currency again to salvage its economyEquity markets across the world have bounced back after the initial Brexit shock. Brexit was a dramatic moment and we may not have heard the last of it, but an equally important concern is the reaction from the monetary authorities in China in the coming weeks. India needs to keep a close watch on Chinese currency policy, especially since $20 billion of deposits have to be repaid in September. The Chinese currency tracks the US dollar in a system of managed float. Many in the market fear that China will soon devalue its currency to prevent a further slowdown in its economy.

Source: Mint July 03, 2016 18:45 UTC