Chinese Media Says “Not to Panic” over the Market Plunged as Coronavirus Concern

After the reopening of mainland Chinese stock markets on Monday, the Shanghai composite closed 7.72% lower, while the Shenzhen component and Shenzhen composite dropped 8.45% and 8.41%, respectively.

The market plunged on the first trading day after an extended Lunar New Year closure, raised a concern over the coronavirus outbreak. However, the Chinese state media has told the investors in an op-ed that no need to panic over the situation as it’s normal to see large fluctuations in markets following major events that occur suddenly.

“Historically, there have been many events that caused panic such as the Sept. 11 terror attacks and SARS outbreak — but they eventually proved to be a one-time impact on markets,” said the op-ed.

Another state-journal also said that the market fall is a “black swan” that would not harm Chinese economy in a long-term.

The economy might be affected in the first quarter, but after that it will stabilize with the Government’s support.