The sharp declines in the Chinese stock market shocked global markets. The Chinese government's response of shutting down the market after a 7% plunge conveyed that their stimulus efforts were failing to support growth targets. This undermined investors' confidence in China's economy sustaining growth through its transition away from manufacturing. Further currency devaluations by China to boost exports have weakened the yuan and exposed inconsistencies in government policy, fueling concerns about capital flight from China. Problems with China's policies include unpredictable market swings from the 7% shutdown rule, margin loans exacerbating declines, and how currency devaluations unsettle investors in Chinese stocks.