Even though the outbreak emerged from a city of China, the Chinese market remains unscathed in the wake of the coronavirus whereas, the global markets are sinking rapidly. Global stocks are experiencing shocks as investors are dumping equities, as the investors fear a recession in the coming days. The country to first witness the outbreak has emerged almost without a scratch as the global markets are dipping. As per the Shanghai Composite Index (SCE) which is the benchmark index of China has only recorded a decline of 2.53 percent since the first case of coronavirus surfaced. The previous reading shows that the Chinese market index stood at 2,962 on December 25, 2019. This was five days before China informed the WHO of an unknown virus spreading in the country. Today, SCE is at 2,887.
Yesterday alone, Dow Jones sank by 10 percent after the virus infected the US and global economies. Other stock markets around the globe are reporting heavy losses due to the pandemic. The Chinese market managed a strong recovery amid the virus outbreak but the global markets are sinking as their economy is coming to a standstill.
On January 22, 2020, China placed Wuhan – the epicenter of the virus under complete lockdown to contain the virus. There were other measures in the country to reduce the effect of the virus on its nationals but still, SCE recorded a 10.26 percent fall since January 22. Looking at the decline, the central bank pumped 1.2 trillion yuan worth of liquidity into the market to reverse the operations and stabilize the economy. With cases rising outside of China, the country’s index is recovering while the world’s, amid the outbreak, is constantly declining.
