Stephen Davies, CEO, Javelin Wealth Management:
Davies said markets had plenty of reason to be cautious and factor in relatively low returns on investment for year as a whole, following a turbulent ride in 2015.
"It's very easy to get side-swiped by the big headline numbers in Shanghai and obviously they are very large," he said. "But in reality, do they have real impact elsewhere? Only insofar as genuine reflection of the strength, or otherwise, of the underlying Chinese economy."
The impact outside China was, in truth, not large because moves in A-shares were driven by local policy action, momentum, and liquidity, said Davies.
Domestic punters, he added, were confounded by the PBOC's "extremely confusing" policy actions and, as a result, were pulling their money out of Chinese markets.
"The implication at the end of last year, when the renminbi were injected into the SDR system of the IMF, was that we would be looking at a greater degree of stability and narrowing, perhaps, of that discount between offshore and onshore renminbi."
Instead, the gap between offshore and onshore exchange rates for the yuan has widened. The yuan plunged to a five-year low in offshore trading on Wednesday.
This, Davies concluded, had led to further confusion because various Chinese policymakers, at various stages, have said they did not want to see the gap widen.
"And yet during the course of this week, we've had other policy makers who have been implying something [in the] reverse. So I think to some extent, from a policy perspective, the message needs to be firmed up and made a little more unified."