Chinese stocks fall after global due to pandemic fears

US, WASHINGTON (NEWS OBSERVATORY) — Chinese stocks closed lower on Friday, copying the dynamics of global markets after the collapse triggered by increased fears about the spread of coronavirus around the world.

At the same time, the loss of the PRC stock markets was limited by the hopes that the outbreak of infection in the country was able to be controlled, as well as by the expectations of further easing of budget policy.

The Shanghai Composite Index fell 1.2%, the blue chip index CSI300 – 1.4%. Since the beginning of the week, SSEC has fallen 4.8%, CSI300 – 5.9%.

The Hong Kong Hang Seng Index entered the bearish trend at the opening, but during the session it recovered some of the losses, closing with a 1.1% decline. At the same time, the index showed a record weekly drop in two years.

The China Enterprises Index lost 0.8%.

The People’s Bank of China announced on Friday a reduction in reserve requirements for a number of banks, saying it would release long-term funding of 550 billion yuan.

Some analysts are waiting for the next reduction in the key rate on loans (LPR) next Friday, following various policy easing measures taken since the end of January.


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Article is written and prepared by our foreign editors from different countries around the world – material edited and published by News Observatory staff in our US newsroom.