After a few sessions of relative stability, risk aversion returned in a big way to China's stocks Tuesday with the Shanghai and the Shenzhen Composite both down 6 percent by the end of the session.
Local media put the sudden return of volatility down to Chinese brokerages increasing margin lending and short-selling. Traders and analysts in Europe and the U.S., meanwhile, spoke of concerns over another devaluation of the yuan, fuelling another rout in its stock market.
"We think there is a reason to believe that the Chinese renminbi (yuan) devaluation isn't over. There could be more moves there," Ben Gutteridge, the head of fund research at Brewin Dolphin, told CNBC Tuesday.