FXStreet (Delhi) – Research Team at Investec, notes that China is struggling to find a new growth model and its currency devaluation is transferring problems to the rest of the world. Key Quotes “Overnight the People's Bank of China (PBoC) cut its reference rate by 0.5% against the greenback, falling for the eighth day in a row, falling by the most since August. This sparked a selloff in stocks so sharp that it forced the CSI 300 Index to close early after losing 7% for the second time in a week, this time within 30 minutes of the exchange's open. That is a daily circuit breaker triggered within 30 minutes. The Shanghai composite also suffered heavy losses. The onshore Yuan went on to weaken to a five year low against the greenback after the soft Yuan fixing. The currency then rallied in offshore trading amid suspected PBoC intervention, leaving many puzzled what the central bank are trying to achieve. An emergency meeting of China’s securities regulators was called. Now, new share selling restrictions (due for implementation from Jan 9) will oblige major shareholders to not sell more than 1% of a company’s listed share capital every three months – but this looks less restrictive than the previous ban in place since August, which could be adding to selling pressure.” For more information, read our latest forex news.