Mr. Yao Yudong, head of central bank's research institute for finance and banking defended People's bank of China's (PBoC) move to devalue Yuan. According to him, recent rout in the global market is not be blamed on PBoC, but on FED, who is planning to hike rates this year.

Mr. Yao went further to ask FED to push back its rate hike plan, in order provide more time for the fragile markets to prepare.

China has issued several propaganda claiming the soundness of the economy.

In spite of showing calm, insiders say recent turmoil in financial markets have spooked Chinese officials over its devaluing of Yuan. So they are more likely to keep tight grip on Yuan in the near term.

According to officials, with devaluation, larger outflow from Chinese economy has baffled policymakers, which has further increased with rise in financial turmoil.

After 5 days of consecutive drop and wiping out about 20% of the value, Chinese stock index Shanghai composite rose by 5.4% today.