Time to brace for bumpy ride ahead

The 6-percent plunge of the benchmark Shanghai Composite index on Tuesday is only the latest warning that, in spite of the Chinese government's strenuous efforts to stabilize the stock market, a large correction in share prices could still be an imminent risk.

For those who are counting on China's 7-percent economic growth to help sustain the global recovery, this is indeed a cause for concern. If Chinese policymakers cannot effectively stem panic sales, there is a real possibility that the turbulence in Chinese equity market could spread to make the country's economic slowdown much broader and harder than expected.

However, if the world economy is to survive a bumpy year, that may be even more eventful in the latter part, policymakers around the world should better brace themselves for more financial and economic headwinds.