Shanghai Stock Exchange experience largest daytime decline in last 9 months
The decrease is caused by coronavirus in Wuhan.
Shanghai blue chips index CSI 300 dropped in more than 3% during Thursday, which represents largest intraday decrease since last May. The overall Shanghai share index weakened in 2,8%. Similarly, whole the business week in Shanghai wasn’t successful – it was actually the worst business week since August 2019. Moreover, Shanghai stocks close down on Friday for the celebration of the Chinese lunar New year.
Selling mood on Chinese stock exchanges grew after government decided to close off the city of Wuhan, where the virus probably started. Coronavirus is most compared to SARS virus, which spread through China during 2002 and 2003.
The decreased selling mood was present in all sectors. Yet, transportation and chill commerce seem to be affected the most. The only exception is healthcare, which is expected to grow due to demand for medicines and vaccinations. Unfortunately, there is no medicine yet, which could defeat the virus.