Unlike rest of the world, Chinese stock exchanges have survived coronavirus shock with only a little hurt. In comparative sense, China’s share markets have become from one of the worst performing indices in pre-Covid-19 phase to better performing ones now.
China’s share market benchmark, Shanghai Composite Index (SCE) was at 2,915 on December 12. It was just before the news of novel coronavirus outbreak in China started surfacing. It reached the high point of 3,115 on January 13 and slipped marginally to 3,095 on January 20 when China for the first time officially admitted novel coronavirus outbreak with pressure building from within and outside the country.
On January 23, when it closed for Chinese new year holidays, it was trading at 2,976. It saw a major fall on February 3 when it opened after holidays were extended in the wake of novel coronavirus outbreak. Trading was closed before time at 2,746 point.
Interestingly, China a day earlier had announced infusing liquidity worth of $173 billion into its markets. This kept the sentiments in Chinese markets in good spirit despite increasing cases of novel coronavirus in China through February. The result was the losses in Chinese stock markets were not as severe as outside.