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World markets experienced a "Black Monday" rout as anxiety over world economic prospects has been accumulated and fermented recently.
Meanwhile, world currency and commodity markets have also been affected by the new round of fluctuation.
Among the worst-hit, Chinese stock markets plummeted dramatically in two straight days, crashing to its lowest level since December 2014.
Analysts pointed out that the global markets' tumbling was connected with a strong prediction of a possible hike in the U.S. Federal Reserve's interest rates and uncertainties of the world economic recovery, having no direct links with China's economy.
Though the plunge of global stock markets was started by Chinese volatile markets, said Tommy Xie, an economist at OCBC Bank in Singapore, the fundamental reasons are the anxiety aroused by U.S. interest rate hike predictions and fragile world economic recovery.
Since 2008 financial crisis, Chinese economy has acted as a stabilizer for global economy, he said, saying the recent adjustment to the RMB's exchange rate mechanism made international investors who got used to China's role of "an anchor" uncomfortable.
With the prediction of the interest rate hike, currency value of countries like Russia, Singapore, Malaysia and other emerging economies have fluctuated severely over the past few months.
Moreover, the ongoing uncertainty about the timing of the interest rate hike may exacerbate the fluctuation.
Russ Koesterich, global chief investment strategist at BlackRock Inc., the world's largest money manager, believed that the latest financial markets' slump is a lagging response to multiple negative information, and is a combined result of concerns of investors over global economic outlook.
In fact, global economic recovery is still fragile and uneven, as developed countries, after the financial crisis, sought to use quantitative easing policy as a major measure to bolster their growth, which consequently resulted in twists and relapse of world economy.
However, the concern over Chinese economy is overdone, Larry Hu, head of Greater China Economics at Macquarie Group, said.
In terms of economic foundamentals, the Chinese government still has ample space to unleash its most potent interventions, The Economist said.
Despite the weak performance of manufacturing and real estate, the rapid growth of the service sector is becoming the new highlight of China's economy.
Charles Collyns, chief economist at the International Institute of Finance in Washington, dismissed the suggestion of another global financial crisis in the air. h He said "there are enduring factors that do imply a more enduring impact on the global economy," but after the 1997 financial crisis that hit Southeast Asian countries, emerging economies freed up their currencies and capital markets, and their companies stopped depending excessively on what were once cheap dollar loans.
In addition, those countries enjoyed an adequate foreign exchange reserves, analysts said.
What's important now is that all countries around the world unite and work together to surmount the current difficulties, avoid harmful results of competitive currency depreciation and capital markets' contagious dive.
