India - China: Relations And Developments-2

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<b>World Markets Fall After Plunge in China</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Meanwhile, the price of oil fell on speculation that a slowing Chinese economy would slice into demand for fuel. A barrel of light, sweet crude was down 56 cents $60.83 in premarket trading on the New York Mercantile Exchange.

"The (rumors) that China is going to impose a capital gains tax resulted in regional markets falling," said S. Sharath, an analyst with MIDF-Amanah Investment Bank in Kuala Lumpur, Malaysia, where the benchmark index tumbled 2.8 percent.

But Greenspan's comments also took a heavy toll on Asian markets.

"Our economy is also dependent on the U.S. economy, if there is adverse news, exports from our country is going to drop," Sharath said
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China's economy last year grew 10.7 percent -- the highest rate since 1995 -- and a central bank report at the beginning of the year estimated it would expand 9.8 this year.
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<b>U.S. stocks plunge to worst 1-day drop since 2001</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Concerns that tighter credit conditions in China and Japan might dampen global growth first sent Shanghai sliding 9% overnight before the sell-off spread to other markets
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<b>China slide spreads wide</b>
Futures fell sharply before the open as investors weighed a 9% plunge in China's leading stock index overnight. <b>The slide - the biggest in China in a decade - came amid concerns of more economic tightening measures, as China's parliament prepares for its annual session next week.</b>

Access to easy money across the globe has been credited for boosting economic growth and fueling demand for assets such as stocks and bonds. The surge in private-equity deals, such as Monday's $45 billion offer for TXU Corp. (NYSE:TXU - News) , has also been made possible by friendly financing conditions
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