China s searching for stock market scapegoats.

In the currency market, the government has spent hundreds of billions of dollars to stabilize the yuan following a surprise devaluation on Aug. 11. As the plunge continued, the devaluation of the yuan shocked global investors, deepening a selloff in emerging-market currencies and erasing $7.7 trillion in global equity value. Even as China gave market forces a bigger say and welcomed global investors to its once-isolated markets, its policymakers have been caught unprepared in areas such as regulation, crisis management, and communication with the public. [Extracted from the article]