"More than just concerns of a slowdown, market reforms in China have caused sharp falls in its stock and currency markets, resulting in some clumsy and disappointing policy moves which have shaken confidence in the ability of Chinese policy makers. It will take time for China to restore confidence in its stock markets, currency and economy and the interim uncertainty, could cause significant volatility in markets in the year ahead."
After stocks experienced a three-month long rout last year, the government unleashed a shock-and-awe state rescue campaign consisting of liquidity-boosting measures aimed at improving confidence but January's monthly losses likely saw officials return to the drawing board.
Markets with high level of exposure to mainland investors and China's overall economy suffered the biggest knock-on effects within Asia.
Hong Kong's Hang Seng Index tanked 11 percent in January, the second-worst monthly performance since 2008, IG said. Singapore's Straits Times Index meanwhile lost more than 9 percent