Chinese stocks recorded the lowest opening since 2015 after markets reopened following the prolonged lunar holiday. Mainland investors traded for the first time since January 23 when they broke for holiday.
The People’s Bank of China on Monday injected $22 billion to cushion the financial markets from coronavirus blow. On Sunday, Chinese authorities flooded the market with $170 billion to ease liquidity and buy up securities from investors exiting the market.
The Shanghai Composite was down 7% in early Monday trading as investors worried of the mounting death toll. Furthermore, two-thirds of China’s economy remains shut down this week as some provinces extend the lunar year break until February 9.
There have been 360 confirmed deaths with over 17000 suspected infections in China. Furthermore, there have been travel restrictions on Chinese nationals to the US, India, Russia, New Zealand, Israel, and Singapore.
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