8,083.80-170.0
Stock Analysis, IPO, Mutual Funds, Bonds & More

Traders in China throw away script after virus jolts stocks

Assessing the development of the outbreak has become critical, traders say.

Bloomberg|
Last Updated: Feb 22, 2020, 11.13 AM IST
0Comments
Shutterstock.com
shutterstock_771480514
China’s stock traders are navigating the vagaries of the country’s coronavirus data for clues on when euphoria fanned by Beijing’s emergency support measures may peak.

Assessing the development of the outbreak has become critical, traders say, as a significant turn for the better could reduce the urgency of further policy easing and call for a cut to bullish positions.

But feeling the epidemic’s pulse has been tricky, with the government repeatedly amending data methods. The number of new infections published Thursday for Hubei province, the center of the health crisis, dropped sharply after China changed the way it reports them for the second time this month. On Friday, the province upwardly revised daily tally released in the morning, blaming delays in confirming infections at a prison that wasn’t connected to the reporting system.

It’s prompted investors to get creative, putting indicators ranging from school-reopening dates to work-resumption schedules in different cities on top of their watch list, while watching with caution a rally that has seen more than $1 trillion of market value recovered following February 3’s slump.

“With all the revisions, the virus data might not be so accurate and it confuses me,” said He Qi, a fund manager with Huatai-PineBridge Fund Management Co. “All I care is when schools will reopen to indicate the situation really getting under control, as nobody would risk the lives of young children.”

He plans to start trimming his holdings when local governments unveil more-definitive school-restart dates.

Wei Tao, managing director of Shanxi Fengshang Investment Management Co., is keeping a tab on the number of cities where people go back to work. He said that will prompt some investors to pull out of stocks to reinvest in business operations.

Also Read

Coronavirus bugs diamond traders

Traders concerned over advance payments made to farmers

Banking stocks zoom, then fall as traders book profit

Stock traders fixate on the Italian count for their next move

Gold rate jump as traders flee from equities

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service