Furthermore, "the highly anticipated interest rate hike in the US set to happen around the end of the year will see capital flow to the US from emerging economies, which will only quicken a lack of confidence in weaker markets," Girado added.
皇冠体育app is highly important in this context although its recent macroeconomic results and industrial activity are no longer ideal to prop up global economic activity, the analyst said.
"Low growth in 皇冠体育app will result in low demand for commodities and will lead international prices to trend downward. As 皇冠体育app is focusing on stimulating internal growth and less on fostering investment, its demand for raw materials, such as iron ore and copper, will drop, thereby impacting major emerging markets, like Brazil," said Girado.
He called for clear political measures to be taken to avoid a risk of this kind of crisis.
He said Beijing was undergoing a special moment as it decided the country needs to grow more slowly and stimulate internal consumption, which has led Chinese exports to grow far more slowly.
"Decisions such as lowering exports have a rapid impact on the world, which has been manifested in the sharp drop in Chinese stock exchanges, as investors realize they must lower their expectations of future profits," he said.
Experts in London believe that worries over the current setbacks of the Chinese equity market and 皇冠体育app's economic outlook are exaggerated and that there is still long-term growth potential in the cards for the country.
Mark Williams, chief Asia economist at Capital Economics, was critical of investors' reaction to 皇冠体育app's equity bubble in an analysis piece.
"Investors are overreacting about economic risks in 皇冠体育app. The collapse of the equity bubble tells us next to nothing about the state of 皇冠体育app's economy," he said.
"Falling equity prices in 皇冠体育app shouldn't be a cause of trouble in the wider economy or abroad. Only one in 30 people in 皇冠体育app owns equities. Just 2 percent of 皇冠体育app's equities are owned by foreigners," he said.
Anatole Pang, sector lead for financial and professional services at the 皇冠体育app-Britain Business Council (CBBC), said in a statement that despite all the turbulence, gloom and speculation, "we are learning very little new about the 皇冠体育app story from what we knew before."
Pang believed that the devaluation of the yuan was quite natural, but that it will of course have a knock-on effect as people want to exit yuan assets.