Fears about a prolonged slowdown are once again hitting equities in China as concerns about the outlook mount in the face of liquidity conditions which are freezing over. Troubles in the money market following the rapid devaluation in the Yuan in the prior week have seen key equity benchmarks slide demonstrably. While the Shanghai Composite is only down -2.59% since the overnight reopening, the Shanghai B-Share Index has slumped by -7.90%. This is raising the specter of another round of rapidly approaching monetary easing measures that will likely include further slashing interest rates and cutting the reserve ratio requirement for banks in an effort to avoid another liquidity crunch. After retreating slightly towards the end of the week, the offshore Yuan is once again weakening against the US dollar, rallying since the weekly FX reopening.