Says that impact from the virus outbreak on China’s economy is temporary
- Stock market plunge also due to panic triggered by ‘herd effect’
- Virus outbreak will not change China’s long-term economic fundamentals
- Economic development still has positive factors and shows strong resilience
Chinese authorities have been offering a lot of reassurances during the course of the day and I reckon this rhetoric could be one that keeps up for the rest of the week as they try to inject some calm into markets today.
For some context, the drop in the Chinese equities today is the most since 2015 and the Shanghai Composite recorded its 6th largest % decline since 2000:
