Shanghai Stock Exchange index dropped in 0,2% in the middle of the week
The decline appeared after almost 2% growth on Monday and Tuesday, and the fall was caused by a growing fear of new coronavirus cases.
Even though quarantine in Wuhan eased, there’s a growing fear that China could experience second wave of new coronavirus infection spread as number of infected doubled. Main Shanghai Stock Exchange index slightly dropped only because sub-index of financial market added more than 0,5%. Similarly, Shanghai Stock Exchange, a smaller Shenzhen Stock Exchange, fell in 0,16%.
Analysts believe that Tuesday’s growth of Chinese shares was affected by China’s Central Bank, which provided markets with sufficient liquidity. Apart from coronavirus uncertainty, there’s growing fear of indebtedness of Chinese enterprises.
New coronavirus cases could harm the fragile market stability. China claims that newly affected patients have only travel history, yet the number of asymptomatic people is expected to have raised 4 times in past days. Moreover, there’s information that unspecified city in northern China considers movement restrictions due to the risk of coronavirus spread.