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

The five stages of company growth!

company Many people who study stocks will analyze the fundamentals of the stock, such as viewing its performance report, PE, PB, PEG, debt ratio, dividend ratio, cash flow, ROE, EPS growth, etc. I don't know if you tried it. After performing many basic analyses, you will feel that the prospects for a particular stock are very good.  You have even read the analysis reports of many large banks, or listened to the analysis of many market participants and obtained a consistent high evaluation.  Then, you will think that this stock will grow in the future, so you buy it and think that you can use this stock to create a better future from now on, and the final development of the story is the opposite of the fact that the development direction will eventually Put you in trouble or lose money. I will not deny the importance of basic analysis, because, in addition to focusing on technical analysis, I am also very concerned about the company's basic factors. I am an investor fo...

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...

Teladoc stock forecast 2025: Is it time to buy TDOC?

 TDOC's performance exceeded expectations. Why did the performance decline after the announcement?  Teladoc (TDOC) reported quarterly earnings of US$0.13 per share, which exceeded the consensus estimate of a loss of US$0.57 per share. In the same period last year, it had a loss of US$0.4 per share.  The earnings of this financial report far exceeded expectations.  In the last quarter, people expected this telemedicine service company to lose 0.25 US dollars per share, but the actual loss per share was 0.27 US dollars, which was not as good as expected at the time.  In the past four quarters, TDOC exceeded expectations twice.  The management stated that the company's current momentum in various channels and regions should not be underestimated in the conference call. It has raised its annual revenue guidance to 20 million U.S. dollars, which is expected to be between 1.97 billion and 2.02 billion U.S. dollars.    In the first quarter, the comp...

Capital Flows Tracking Weekly

Release:  January 27, 2021 The weekly Capital Flows estimate the industry's total, based on the report covering more than 98% of mutual fund and ETF assets. Collect actual mutual fund net new cash flows and ETF net issuance together monthly; therefore, there is a discrepancy between these weekly estimates and monthly flows. The data from the previous few weeks reflect revisions due to data adjustments, reclassifications, and changes in the number of fund reports.  Mutual fund data represents the estimated value of net new cash flows, that is, new sales minus redemptions plus net exchanges, while exchange-traded fund (ETF) data represents net issuance, that is, net issuance minus total Redemption amount. This series does not include data on mutual funds that primarily invest in other mutual funds and ETFs that primarily invest in other ETFs.

What is the meaning of NFT and NFT stocks?

Not long ago, Christie’s, a century-old auction house, successfully auctioned a sky-high price for NFT digital artworks, which eventually sold for more than US$69 million. What is the meaning of NFT? The full name of NFT is Non-Fungible Token, which is a non-homogeneous token, which can be understood as a genuine authentication certificate encrypted by blockchain technology. Because of its encrypted and unique characteristics, it is currently widely used in the field of digital art. As long as it is a digital version of art, everything can be NFT, including but not limited to pictures, music, games, videos, and even a single tweet can become NFT. Jack Dorsey, the founder, and CEO of Twitter posted the first tweet "Just setting up my Twitter" on Twitter, which was only 5 English words, and the price was as high as 2.9 million US dollars. The NFT boom is sweeping, and related concept stocks have already taken off. There are many more popular science introductions about NFT, wh...