China’s stock market Collapse will affect India?

There is no direct major impact but in the order of importance these might happen.
1)Some HK based funds will route investments to other emerging markets other than China , India may likely benefit.
2)Iron ore /Steel and other inputs for Chinese economy for which India is one of the exporters to China may see slow down as their demand slows down.
3)Since markets in China are govt supported , govt  may actually enforce more tax recovery on  large industries to cover the govt effort to support market losses  leading to increase in product  prices to cover the losses and now it being a monopoly in electronics other countries will still buy at those prices.
Overall there is no direct impact but most of the impact if at all felt will be based on what the Chinese govt decides to do its efforts to cover the losses made by its naive first time investor citizens .

Chinese govt unlike democracies cannot just take its hands off and ask citizens to bear their own losses in market , they need to act like a big daddy  as always and that has economic costs which as always if I am guessing right they will take from foreign product buyers or foreign investors some way or the other.


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