Stock market in China loses 9 percent at first opening after corona virus outbreak
Trading of Chinese stocks, the CSI 300 Index, was 9.1 percent lower at opening. The stock market reopened on Monday for the first time since January 23, after it was closed due to the corona virus outbreak.
The decline is the largest since 2015. The Chinese National Bank (PBOC) had already anticipated the decline and made more money available for the financial markets. The bank wants to prevent financial problems from arising when investors sell shares in large numbers.
Due to the measures being taken to prevent the spread of the corona virus, the Chinese economy is suffering. Analysts assume a loss of 1 to 2 percent of economic growth in the first quarter of this year. That can be much more if, for example, factories remain closed longer than February 9 as currently planned.