Chinese shares plunged due to the outbreak of the new coronavirus in China. The Shanghai Composite index immediately lost 1.4 percent to the lowest level this year. Meanwhile, the blue-chip CSI300 index fell by 1.7 percent to a two-week low. China’s stocks recorded the biggest losses in the sectors ranging from airlines to film producers and casino operators. According to expert estimates, this is just the beginning of a massive stock market decline around the globe. The coronavirus epidemic started ahead of the Lunar New Year. This is a holiday season in China when millions of Chinese return to their hometowns or go on vacation abroad. As a result, the coronavirus can spread across the world much faster. The close attention to the problem at the highest level indicates all the gravity of the situation. In his recent statement, Chinese President Xi Jinping announced that curbing the outbreak was a top priority. These words signaled to investors that it was the time to leave China’s local market. Coronaviruses are a large group of viruses that can cause various infections such as the common cold, Severe Acute Respiratory Syndrome, or SARS, and Middle East Respiratory Syndrome, or MERS.
