China will give another relief package to handle the troubled economy, know why Indian markets are worried

China marks more fiscal stimulus for the economy: The Chinese government has clearly indicated that the government is planning to introduce another big relief package i.e. stimulus package to revive the economy. However, no specific information has been given about how big this package will be.

• Investors are constantly worried amid the announcement of China's relief package. Investors fear that the government may fall short of its economic growth target this year.
• Hints of a new stimulus package could fuel fresh speculation in global financial markets, as urgent government measures show the economy is in worse shape than expected.
• On the other hand, China's property market is also going through difficult times, in such a situation, along with strengthening the property market, the Chinese government is also emphasizing on strengthening the banks on the economic front.

What effect will this have on India?

• According to the report of news agency Reuters, China can give a huge stimulus package of 284.43 billion dollars i.e. 2 trillion yuan.
• In such a situation, foreign institutional investors in India may turn to Chinese stock markets by selling and due to this, a sell-off situation may arise in the Indian stock market.