Global stock markets dropped sharply in recent days. Shall China be blamed for the broad market correction?

"The impact on global assets price brought about by the RMB exchange rate is out of our expectations," Gong Fangxiong, Former Chairman of JP Morgan's China investment banking, said both the Japanese yen and the euro saw devaluation, but their impact is not so great, while 3 to 4 percent devaluation of the RMB posed a broad impact on the world.

Fears spread among the global financial markets.

However, Gong held the view that people should not panic about the devaluation of the RMB. "Tt will not crash and there are still investment opportunities in the Chinese stock market."

Gong made the remarks during the launching ceremony of an online wealth management platform on August 22.

He believes the US dollars is unlikely to appreciate in the period of time to come. Global currencies will fluctuate in a certain range.

Many people attributed the "correction" of the US stock market to the yuan devaluation and Gong thinks it is an excuse for the Americans. The root cause is the prospect of US rate hike in September and December amid global deflation, which has confused the capital market.

"So I think the correction of US stocks is related with expectation of the Fed's policy and has little to do with China."