Can hopes rise for the hopeless in the equity market?

The People's Bank of China, the central bank, said last week that it is capable of keeping the yuan "basically stable at a reasonable equilibrium level" despite the emergence of speculative trading in the currency.

Experts tell investors overseas, 'Worry, but don't panic'

There's no reason for panic. Worry, yes, but not panic.

That was the opinion of some US investment strategists after China's main stock market went into another free fall last week and roiled other markets across the world.

Stock prices in China fell so fast that for the second time in four days last week, the new circuit-breaker mechanism kicked in and halted trading in less than an hour after it began. After the market closed Thursday, however, Chinese regulators suspended the circuit-breaker mechanism, hoping that will allow markets to find their level.

China's tumbling stock prices are, in themselves, nothing for investors outside the country to panic over. Because of government regulations, very few foreigners even own stocks on the Chinese markets that seized up.

"This is not a situation that should result in panic; it should result in caution," said Kristina Hooper, head of investment strategies for the United States at Allianz Global Investors.

"Chinese growth is clearly slowing, but it is not plummeting," said Ben Mandel, a strategist with JPMorgan Funds.