Chinese indices fall 3% because of Wuhan isolation in times of outbreak

This Thursday, the 23rd, the chinese indices dropped around 3% thanks to the isolation of the city of Wuhan in times of the coronavirus outbreak. Investors were spooked by the measures that were taken and sold shares of airlines, cinemas, restaurants and theme parks. It is worth mentioning that, so far, the virus has killed 17 people. In addition, the number of infected is already close to 600.

The big drop recorded today is the biggest in China for nearly nine months. The CS1300 and the Shanghai Index are the main sets of Chinese stocks affected. Want to know more about the fall of Chinese indices? Then keep reading our article!

More information on falling Chinese indices

The declines in the indices began in the early afternoon. They were intensified by announcements of new cases of infections in China. Because of them, several entertainment events were canceled.

In order for you to understand the proportion of this fall, it is worth pointing out the loss of each of the two main Chinese stock indices.

The CSI300 contains the top companies that are listed in both Shanghai and Shenzhen. On today's day, it dropped by 3.1%. That's the biggest daily drop he's had in nearly nine months. If we consider the week, this is the worst it has had since May 2019. The Shanghai Index already had its worst week since August last year. Its drop was 2,75%.

It is important to note that, due to the one-week Lunar New Year holiday, Chinese financial markets will be closed from Friday (24).

It is also worth mentioning the other indices that fell on Thursday. The Nikkei (from Tokyo) was down 0.98% and the Hang Seng (from Hong Kong) was down by 1.52%. The Kospi Index (Seoul) lost 0.93% and the Straits Times lost 0.6%. Finally, the S&P/ASX 200 (Sydney) lost 0.63%.

Final considerations

Having said that, we News Report we hope to have clarified the main information about the fall of the main chinese indices. Comment what you thought of the losses and what you think about the impact of the coronavirus on the Chinese financial market. Also, be sure to follow the next articles on our website! We will keep you up to date with the main issues regarding the economy of our country and the world! So stay tuned!

 

Source: wow