What was of note however, was the recent market correction of share prices, following a period of extraordinary growth whereby equity prices in China grew by almost 160 per cent between mid-June 2014 and 2015. The correction in the stock market resulted in an outflow of capital, exacerbated by the double devaluation of the renminbi in August.
On the upside, there may be stronger than anticipated effects stemming from the extensive macroeconomic stimulus being provided and from other policy measures taken. Confidence may also improve more quickly than currently expected.