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China shares show record monthly decline since May 19

UNITED STATES (OBSERVATORY NEWS) — Chinese stocks fell on Friday and recorded the maximum monthly decline since May last year amid a sell-off in global markets due to fears of a coronavirus pandemic.

The Shanghai Composite Index in February fell 3.2%, but its losses were modest compared to some other major markets thanks to economic support measures that triggered a rally in the middle of the month.

Following the session, the Shanghai Composite and the blue chip index CSI 300 slowed down by more than 3.5%, showing the most significant one-day decline since February 3, when coronavirus was rapidly spreading in China.

The CSI 300 index for February lost 1.6%.

For comparison, the Japanese Nikkei this month fell by 9%, and the S&P 500 – by almost 8% at the close of the session on February 27.

Both Chinese indexes retreated from the lows on February 3, after Beijing promised decisive action to mitigate the outbreak.

Market recovery was also helped by signs of a slowdown in the spread of the virus and a decrease in mortality in the country, which further strengthened the view that the outbreak in China was taken under control.

Mainland China, the outbreak, reported 327 new infections on Friday – at least January 23rd. The total number of cases in the country exceeded 78.800, the number of victims reached almost 2.800.

The Hong Kong Hang Seng index fell 2.4% to 26.129.93 points, while the Hang Seng China Enterprises index fell 2.7% to 10.302.36 points.

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