One of the lessons from the recent stock market rout in Shanghai and Shenzhen lies in the fundamentals of the Chinese economy, most importantly its industry's unfitness for the transition China wants.

It is reflected in the marked decline in the general assessment by manufacturing managers of their business environment, as evidenced by the recent data from factory surveys.

The reading of the Caixin China general manufacturing purchasing managers' index dropped to 47 points in September, its lowest level in 78 months.