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Will China's economy recover as the epidemic is under control?


During the Chinese Spring Festival, novel coronavirus broke out in Wuhan, and the Chinese stock market was hit hard. Subsequently, the Chinese government quickly took strict measures to block Wuhan, a city with a population of tens of thousands of people, to prevent the further spread of the epidemic, and to take corresponding epidemic prevention measures in other cities. 

When the worst of the epidemic had already occurred, the Chinese stock market quickly rebounded. As the number of infections continues to decline, China's Shanghai Composite Index is expected to rise further.

Sars Period

Sars Period

Looking back on similar events in the past, the SARS epidemic in 2003, the stock market also made a short-term decline, and then the SARS epidemic was brought under control, the stock market immediately went up for a long time. According to past historical data, the impact of the novel coronavirus epidemic on the stock market may be short-lived.

China Fund Capital Flow
China Fund Capital Flow

However, looking at China's fund size index, market capital flows are still in the outflow stage, the stock market may be at risk of continuing to fall. Although the epidemic has been brought under control and the number of infections is declining, it has had a serious impact on the profits of some industries and companies. 

For example, retailers of physical stores, tourism, aviation, and so on. Investors need to pay close attention to the relevant industries and companies affected by the epidemic to make portfolio adjustments.

The Shanghai Composite Index
The Shanghai Composite Index


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