SEHK & The Shanghai Stock Market Due to Open, But Will They?
The Chinese financial markets have been closed since January 23rd due to Chinese New Year celebrations. Tomorrow is supposed to be the first day trading will be open in roughly a week for the Stock Exchange of Hong Kong & the Shanghai Stock Market.
Unfortunately the Wuhan Coronavirus has erupted at around the same date and has been growing at an alarming rate. Currently over 14,000 people have been infected globally with the majority of the cases being reported within China. Additionally, over 300 deaths have been reported with only one case outside of China.
The massive growth of the disease has caused pessimism and fear in Asian and especially the Chinese market. The Chinese Government has seemingly prepared for massive losses and as reported by Reuters will invest 1.2 trillion yuan ($174 billion) into the markets.
It is unclear on whether this action will be enough to assist Chinese markets, however. If reports of empty streets, no public transport and walled off neighborhoods are correct, trading floors would also be empty. This could lead to two possibilities, a crash in the Chinese markets or the closure of the markets could be extended.
Either way this could cause many within China to seek safe-haven assets such as gold and cryptocurrencies. Bloomberg have previously speculated that the outbreak of the Wuhan Coronavirus could push Bitcoin higher. It seems that now could be the moment that it happens.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado