The Chinese shares grow for the seventh day successively against reduction of number of new confirmed cases of the coronavirus. According to analysts, it testifies to the ease of fears of investors concerning negative influence of virus outbreak on the economic growth.
As the Chinese daily political newspaper of China informs, on Wednesday the base index, Shanghai Composite index plunges 8.7% (to 2926,9), having restored more than 6 % after sharp falling. The Index ChiNext which traces the prices of shares of start-ups at Shenzhen Stock Exchange, also strongly grew – by 2, 8 %. It not only restored the former losses, but also reached a three-year maximum.
Analysts note that the “tone” in the market was improved fast and the effectual measures accepted by the government for restraint of distribution of illness and also a number of the supporting fiscal measures directed to minimization of risks for the economy.
People’s Bank of China invested in operation in the open market not less than 1, 7 trillion yuan and allocated 300 billion yuan in the form of special means for support of the enterprises involved in struggle against the infection. The Ministry of Finance of China also developed a policy of tax privileges to facilitate financial burden of the companies and separate persons who have suffered from the epidemic.
«Investors expect that the monetary and credit policy will enter into a cycle of decrease in rates for indemnification of influence of the epidemic. It will help the capital market to keep sufficient liquidity and to stimulate growth», – Li Xunlei, chief economist of Zhongtai Securities told.
On Wednesday in the stock market of the Chinese mainland the net inflow of the foreign capital for the sum of 4 billion yuan that testifies to gradual ease of moods of foreign investors was observed.