China had one of the best-performing stock markets in the world in 2015. Yet it was a dismal year for Chinese markets. Chinese stocks suffered an unprecedented summer crash that wiped out 43%, or $5 trillion, of their value at one point. That was followed by an abrupt 2% currency devaluation in August that sent shock waves through global markets. Bold reforms seen as crucial to Beijing’s efforts to turn around a slowing economy, such as a modern stock-listing system and lighter capital controls, stalled as the market turmoil unnerved authorities. The episodes demonstrate the stresses China is experiencing as it tries to shift its economy from one fed by debt and heavy industry into one driven by consumption. For investors, the events of 2015 jolted their faith in China’s capacity to continue driving global growth. Authorities have backtracked on financial liberalization and roiled the country’s finance industry with […]