China growth concerns pose challenge for India: Sebi chief

Sebi Chairman U K Sinha said the Chinese slowdown concerns have posed a new challenge for India and raised uncertainty over the country's growth. Certain things have unfolded beginning of this year which have posed some serious challenges for global economy and also India, Sebi chief U K Sinha said here this evening while addressing an Icra function here. He noted that while previously the challenges were Greece and European Union now the biggest challenge is China.

Some of the measures taken in China have brought about certain amount of uncertainty for global economy and markets, he said. Sinha said with these new challenges it has become challenging for India to continue the high growth path. However, the Sebi chief noted that some policies by the government could help meet growth targets and the country in spite of challenges has shown lot of resilience.

Chinese stocks crashed 7 percent last week on weak manufacturing data amid devaluation of its currency yuan. China's stock markets have little connection to the rest of its economy, but two sharp price declines had brought focused attention on the slowdown in Chinese growth. The plunge in Chinese stocks was set off by concern Beijing is allowing its yuan to weaken too fast against the dollar.

The impact of Chinese meltdown was also seen on Indian capital markets with benchmark Sensex tanking nearly 1400 points since January 1. The Chinese economy expanded 6.9 percent in the first three quarters of 2015, the lowest reading since the second quarter of 2009.