Yuan's depreciation not behind global turmoil, say economists

Premier Li Keqiang said on Tuesday that there no longer exists a basis for continued depreciation of the yuan and the exchange rate will be kept basically stable.

"It is also wrong to interpret the depreciation as a 'competitive currency war'," Shen added.

In economists' view, global concerns about the health of the Chinese economy were overdone recently.

"China has so far maintained prudent monetary policy, the amount of monetary supply is reasonable, investment, trade and the international balance of payment is quite stable. Thus the economic and financial risks are still under control," said Ding.

Tom Rafferty, an economist in China at the Economist Intelligence Unit, said "the volatility that we've seen on the domestic stock market, while hardly putting policymaking in a favorable light, really has little bearing on the wider Chinese economy."

"While the economy is slowing and faces many medium-term challenges, it does not face a hard landing in the near-term. Markets in the region now appear to be adjusting on that basis," he said.