Skip to main content

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


Comments

Popular posts from this blog

Bitcoin vs Ethereum vs Dogecoin: Which one is suitable to buy?

 Bitcoin(BTC), Ethereum(ETH), and Dogecoin(DOGE) are the three most-watched cryptocurrencies.  As a young investor, he has a strong mentality of pursuing returns and accepting new things. In recent years, cryptocurrencies have become the new favorites of many people. In particular, these three digital currencies have attracted the most attention: Bitcoin, Ethereum, and Dogecoin.  However, not all cryptocurrencies are created equally and trying to determine which type is right for you can cause confusion.  Each currency has advantages and disadvantages, and which currency you choose to invest in will depend on your situation.  Investing in cryptocurrency must bear the risk  First of all, you must consider whether cryptocurrencies are suitable for you because all cryptocurrencies are highly speculative and subject to great volatility. They have experienced the "currency disaster" in recent weeks, with an adjustable-rate of more than 30%.    Fur...

NIO and Tesla(TSLA) stock forecast 2025: released important news

  In the past two days, two electric vehicle companies, NIO and Tesla have released important news.  However, the market gave mixed reactions, one rose and the other fell. Let's take a look at what happened.  To  NIO stock forecast 2025  Let me talk about NIO first.  NIO announced this morning that the company will issue additional shares totaling US$2 billion. The price of the additional issuance will be based on the current market price, and the timing of the issuance will be determined according to the company’s needs. It may be a one-time sale or a share.  Wholesale sale.  After calculation, this will cause about a 3% equity dilution for existing shareholders.  However, the market seems to have given more interpretation. Today, NIO's share price has fallen by 6.3%, which is more than twice the theoretical dilution.  To  From the prospectus, the company only stated broadly that the funds raised will be used to strengthen its bala...

My long-term stock market trading strategy!

trading strategy As a stock market investor, everyone has an investment trading strategy. Through my many years of investment experience, I have tried different investment strategies, used different investment tools, and concluded my own set of investment strategies.  This is a long-term investment strategy, not a short-term one. For ordinary investors, how to cope with the big ups and downs of the stock market, and by sharing my investment trading strategy, I hope that it can help investors and enable the asset portfolio to add value steadily. First, when the stock market is at different stages, I will use different coping methods. There are usually three stages in the stock market, and I generally use three different approaches. First, the stock market is in a rising phase. I usually do not use leveraged instruments or make financial loans to trade. Although leveraged trading can make quick and large profits, it can also make quick and large losses.  When trading wi...

AMD stock forecast 2025: Q2 is expected to perform strongly

Before the US stock market on July 19, US technology stocks continued their decline last Friday, and AMD's stock price also continued to fall.  AMD will announce the results of the second quarter of 2021 on July 27. The market expects this performance to be strong, so this round of decline may be a great opportunity to buy the stock.  financial indicator  Due to the strong market demand for CPU and graphics cards in 2021, AMD’s revenue is expected to exceed the maximum value of the financial guidance. AMD’s C&G business is expected to grow the most because higher-priced AMD Ryzen and high-end AMD Radeon sales continue to increase.  In terms of gross profit margin, the market expects AMD's gross profit margin in Q2 2021 will increase by 47% year-on-year.  If the average selling prices of CPUs and GPUs continue to rise in Q2 of 2021, and the ASPs of CPUs and GPUs will increase in Q1 of 2021, the gross profit margin may also increase by 48%.  CPU market sh...

Will the Great Depression make a comeback?

the Great Depression On March 21, 2020, the United States already had initial unemployment data. Exceeding market expectations, the number of applicants reached 3.28 million, a record high. The current unemployment situation in the United States. Before March 7, employment in the United States was not affected by the epidemic. In the week of March 7, the number of people applying for unemployment benefits for the first time in the United States was 211,000, a decrease of 4,000 compared to the previous week. It is still healthy. This shows that the United States is in a good employment track range. The actual data began to fluctuate, that is, the data for the week of March 14, the number of people applying for relief reached 282,000, a slight increase. On March 21, the number of people applying for unemployment benefits soared to a record high this week. 1.7 million people have far exceeded expectations, and market expectations are about 1.5 to 1.7 million people. It can be said...

Cloudflare's 4Q 2021 earnings report

 Just took a look at Cloudflare's (NET) 4Q 2021 earnings report. Cloudflare is in an area that covers several hot spots, including content delivery networks, i.e. CDNs, cloud computing, and cybersecurity. For the Cloudflare quarterly report, here is a summary: 1) Revenue of $194 million (then expected 4Q revenue in the range of $184 to $185 million), up 52% year-over-year ($172 million in 2021, up 51% year-over-year). 2) The number of customers continues to grow rapidly, with the total number of customers has reached 1416 (1260 in the previous quarter). 3) Non-GAAP gross margin was 79.2% vs. 78.1% in the same quarter last year (vs. 79.2% in 3Q vs. 77.3% in the same quarter last year.) Non-GAAP net income has started to turn around, meaning it has started to be profitable. 4) Revenue is expected to be in the range of $205 to $206 million in 4Q. That works out to about 6% YoY growth. Cloudflare had good results this time, beating its previous guidance. Revenues are still growing at a...

4 George Soros advice to investors!

Who is George Soros? George Soros is a Hungarian-born Jewish businessman. It is one of the most influential investors in the world. In 1969, the Double Eagle Fund was established for Arnhold & S. Bleichroeder, an investment management company. In 1973, Soros and his assistant Rogers left Bleichroeder to co-found Soros Fund Management. In 1979, the well-known Quantum Fund was established and continued to make profits. In the Asian financial turmoil in 1997, George Soros sniped the Thai baht and the Hong Kong dollar, which was frightening. Learning from the experiences of successful people can benefit a lot. Here are 4 tips George Soros gave investors. First, to be successful, you must have ample free time. Most people want to be rich, but not everyone realizes the importance of free time. Many people spend a lot of time working to accumulate wealth, sleep, and forget. Set the goal to complete the work indicated by the superior, or the needs of business partners. But they hav...

Investors have begun to switch back to traditional growth stocks

 On Thursday, the stock prices of Cisco, Alphabet, and IBM hit new highs. But more importantly, the previously unpopular speculative growth stocks, including stocks bought by many ARK funds, have now begun to rebound.  How is this going?  Investors' perspective on the market is changing. In the first quarter of this year, mainstream voices in the market believe that the economy will restart strongly, bond yields will rise, and inflation may become a problem later this year. After the end of the first quarter, these expectations were only partially fulfilled.  The U.S. economy has indeed restarted strongly, but bond yields fell in the first quarter instead of rising because investors began to believe:  1) Inflation and supply chain disruption may indeed be "temporary", as the Fed insists;  2) The second and third quarters will be the highest points of stock returns and economic growth.  Alec Young, a chief investment officer of Tactical Alpha, said: “...

Intel, Twitter, and Snapchat stock forecast 2025: latest quarterly earnings reports

 Three technology companies, Intel, Twitter, and Snapchat, released their latest quarterly earnings reports.  Let's take a look at their performance and the key information revealed at the earnings conference. Intel(INTC) stock forecast 2025  Several important data on Intel's earnings report beat expectations.  Among them, earnings per share were US$1.28, higher than the expected US$1.06, an increase of 12% over the same period last year; total revenue was US$18.5 billion, beating analysts’ expectations of US$17.8 billion.  However, in Intel's guidance for the next quarter, the Non-GAAP gross profit margin given is only 55%, which is far lower than the market's expected 59.2%.  The reason given by Intel is that it is worried that supply chain problems will limit profitability, and the expected chip manufacturing business will bring additional costs.  For chip companies, the market is most concerned about gross profit margin.  TSMC fell last week b...