China Rout Threatens to Spawn India Crisis, Top Banker Says

[marmar]

(Bloomberg) A deepening slowdown in China threatens to derail India’s economic growth, triggering financial market upheaval and a falling currency, Vishal Kampani, the nation’s top investment banker, said.

“If China keeps getting hit like this, the yuan has to devalue, and we will see another crisis in India,” Kampani, managing director at JM Financial Ltd., the South Asian country’s top mergers and acquisitions adviser last year, said in a Jan. 8 interview. “I refuse to believe that India will stand out and will look very different.”

Indian stocks and the rupee fell Monday, tracking declines in other emerging markets as volatility in China sapped risk appetite globally. China’s efforts to stabilize the yuan failed to halt equity losses, reviving concern about the Communist Party’s ability to manage an economy set to grow at its weakest pace since 1990.

India’s benchmark S&P BSE Sensex Index fell 0.4 percent on Monday in Mumbai after dropping as much as 1.4 percent earlier. The rupee weakened 0.2 percent to 66.7725 against the dollar as of 4:11 p.m. local time. ...........(more)

http://www.bloomberg.com/news/articles/2016-01-11/china-rout-threatens-to-spawn-crisis-in-india-top-banker-says

[EdwardBernays]

1. you gotta love the condescending tone of the Western press

"reviving concern about the Communist Party’s ability to manage an economy"...

Because capitalist Party's have shown how well they can manage economies... lol. If anything China is showing it's finally learned how to blow a Western style economic bubble. Imitation is the sincerest form of flattery after all.

[Fuddnik]

2. I don't even see anything resembling communism in China anymore.

[EdwardBernays]

3. no

well.

There is in SOME respects, but it's so far removed from what was going on in eg the 1970s as to be unrecognisable.

[DetlefK]

4. China is not "being hit".

The chinese government intentionally created this economic bubble and hoped that everything would magically work out.