Shops, restaurants, and cinemas may be abandoned in many parts of virus-infected China; however, online trading boards, internet roadshows, and analyst calls are teeming with traders who have pushed up stock trading volumes to nine-month highs.
Strategists are busy meeting anxious traders online to dispense tips on the way to trade the coronavirus. At the same time, fund managers aggressively pitch products through live video streaming.
The virus has been a blow to China’s already-sluggish economy, prompting Beijing to boost financial assistance to avoid a deeper hit to financial development. However, with many cities nonetheless locked down and people staying home amid efforts to contain an outbreak that has killed over 1,000, online exercise is buzzing.
Investor interest is highlighting a long-standing turmoil between China’s stock market and its real economy.
While analysts and authorities’ researchers estimate a pointy hit to the nation’s GDP growth this year, Chinese equities have surged for six consecutive sessions as traders piled in to hunt for bargains following the market’s 8% fall on February 3 the first trading session after the new year.
The start-up committee ChiNext has regained all its losses, hitting three-year-peak Monday, while the Shanghai market last week recorded its most significant weekly trading volume since last April.
Membership in Huang’s newly erected trading forum has reached over 100 in a few days as traders are drawn into the market that noticed the blue-chip index bounced 36% in 2019.