China’s three main stock market indexes opened sharply lower on Monday (Feb 3) due to a pneumonia outbreak. The index has narrowed its decline. From the plate, the concept of masks, medicine plate up, tourism, science, and technology board board board at the forefront of the plate decline list.
Chinext’s losses have narrowed to 5.3 percent after falling as much as 8.23 percent earlier in the day. The Shanghai Composite index fell from 7.08 percent to 2,765.83.
The Shanghai composite index opened at 2,716.70, down 8.73 percent. The Shenzhen component index fell from 9.13% to 9,706.58. The benchmark was down 8.23% at 1769.16.
Overall, the stock is still a large area of the limit, more than 2,600 stock limits.
Pharmaceutical plate bucked the trend higher, Harbin pharmaceutical shares, daan gene, China pharmaceutical, haizheng pharmaceutical nearly 20 pharmaceutical stocks trading limit.
In addition, the concept of the mask also went against the trend, teda shares, yangpu medical, nanwei shares, blue sail medical and other shares trading limits.
China’s central bank launched a 1.2 trillion yuan reverse repurchase operation today. The people’s Bank of China cut its seven-day reverse repo rate to 2.4 percent from 2.5 percent. China’s central bank cut its 14-day reverse repo rate to 2.55 percent from 2.65 percent.
The people’s Bank of China said it was closely monitoring market liquidity in the special period to ensure sufficient liquidity.
February 1, the People’s Bank of China, Ministry of Finance, the CSRC and safe, silver circ five departments jointly issued “on further strengthening the financial support for prevention and control of new coronavirus pneumonia outbreak notice, we will continue to strengthen expectations of the people’s bank of guidance, through open market operations, regular lending facilities, a variety of monetary policy tools such as refinancing and rediscount, provide sufficient liquidity, maintain reasonable financial market liquidity abundant, maintain smooth running money market interest rates. The branches of the people’s Bank of China will appropriately increase their tolerance of the reserve requirement assessment in late January 2020 for the financial institutions affected by the adjustment due to the Spring Festival holiday.
On the investors concerned about the relevant issues, the China securities regulatory commission related departments 2 to accept the interview. The CSRC said that the CSRC has conducted a responsible demonstration of various proposals, fully listened to the views of all sides, after a comprehensive assessment, decided to open the market on February 3. This arrangement is consistent with the notice of the general office of the state council on the extension of the Spring Festival holiday in 2020, and is also in line with the notice of the people’s Bank of China, the banking and insurance regulatory commission, the securities regulatory commission and the safe bureau on the completion of financial services work after the Spring Festival holiday.
The CSRC pointed out that the opening time of the stock market, whether on February 3 or continue to delay, both pros and cons can only choose the lesser of the two evils. Further delays could help digest the panic, help exchanges, securities institutions, and investors better prepare, and coincide with extended holidays in some areas. At the same time, it should be noted that the opening of the stock market is an important indicator of the normal operation of the economic system.