Chinese shares plunge by $400 amid coronavirus outbreak
Chinese shares plunge by $400 amid coronavirus outbreak

Over the last few days financial markets have been feverish from China’s virus outbreak. The fast spread of the infection encouraged investors to reconsider their investments in the Chinese economy taking into account operating costs. Currently, many investors have wiped more than $400 billion off the value of Chinese stocks. The Chinese authorities were dissatisfied with the current state of events and condemned Washington for sowing panic over the coronavirus. Chinese stock markets have crashed since January 23, 2020 when the Wuhan virus only began to spread. The coronavirus outbreak has been declared a global health emergency as it expands exponentially all over the world having a significant impact on China’s stock market. Moreover, the relations between China and the US, which were tense last year due to the trade disagreement, have escalated even more. The current situation is a major worry for investors around the world. As a result, investors  wiped around $400 billion off the value of Chinese assets. According to analysts, the Shanghai Composite index fell more than 8 percent to a one-year low. Likewise, the price of crude oil, iron ore and copper, sold in Shanghai, plummeted. The central bank of China tried to ease the panic by injecting 1.2 trillion yuan, or $173.8 bln, into the market via reverse repo operations. The Chinese authorities are sure that this measure can help producers of essential goods to return to normal.

Published: 2020-02-10 04:40:50 UTC
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