Coronavirus: Chinese carriers' shares collapse
Shanghai closes with the lowest result since 2019
Declining shares for Chinese carriers due to the coronavirus that hit the city of Wuhan. However, all sectors of the stock market are affected: the Shanghai index closed with a decrease of 2.8%: this is the lowest result since May 6, 2019, the day when the President of the United States Donald Trump threatened to increase tariffs on Chinese goods (see AVIONEWS). The benchmark fell 3.2%.
Louis Tse Ming-kwong, CEO of Vc Asset Management explained that "there is no reason for potential buyers to make investments. It will have to hold on during the lunar new year, as we don't know how the epidemic will spread".
The Chinese government has banned travel to Wuhan, the capital of central Hubei province. More than 570 people have been infected with the virus, while 17 are died. The shares of the companies have weakened: Air China has lost 4% and China Eastern Airlines has fallen by 2.6%.
AVIONEWS - World Aeronautical Press Agency