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4 Feb 2020
China Press urges investors not to panic over market slide on coronavirus outbreak
Reuters reported headlines from the Chinese government-backed Securities Times and China Securities Journal, as the media outlets urged investors to stay calm following Monday’s local stock markets crash amid mounting risks of China’s coronavirus rapid-spread.
The article called the drop in the Chinese stocks as “normal” and compared it to similar market slumps after the outbreak of the SARS virus nearly 20 years ago and the Sept. 11, 2001 terror attacks on the US.
Key Quotes:
Such events are usually only a short-term interruption ... and do not have a lasting economic impact.
The slide is a “black swan” event that will not change the fundamentals of the market.
The impact of the current epidemic ... is necessarily short-term. After the release of pessimism, the stock market is expected to gradually stabilize.
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