A lack of understanding of Chinese markets likely exacerbated this week's turbulence, according to UBS Wealth Management and JPMorgan.
A move by China's central bank to guide the yuan sharply lower, coupled with the introduction and subsequent scrapping of circuit breakers that halted trading twice this week, rocked global financial markets from Tokyo to New York this week.
The moves revived concerns about the economy while leaving many participants confused about policymakers' intentions. However, some experts say investors must share the blame as well.
"If I were to be harsh about it, I'd say markets do not want to understand the Chinese market," said Kelvin Tay, southern Asia-Pacific managing director and regional chief investment officer at UBS Wealth Management.