Chinese markets close lower amid virus concerns

Tracy Li
The non-banking financial sector took the biggest losses, while media, steel and iron shares also suffered in the mostly down day.
Tracy Li

China’s A-share markets lost ground on Monday, as investors become more cautious while the number of novel coronavirus cases globally continues to rise.

Led by non-banking financial companies, the benchmark Shanghai Composite Index retreated 0.61 percent to end at 2,961.52 points.

The smaller Shenzhen Component Index settled 0.52 percent lower at 11,752.36 points, while the ChiNext Index shed 0.42 percent to finish at 2,372.54 points.

Combined turnover on the two bourses came to 716.3 billion yuan (US$101.2 billion), compared with the previous trading day’s volume of 728.7 billion yuan.

Markets suffered broad-based losses. Securities brokers, insurance companies, media firms and steel and iron makers were among the top losers.

Shenwan Hongyuan Securities Co Ltd, one of China’s leading securities firms, saw its shares drop by 0.62 percent to close at 4.81 yuan.

Kang Shuiyue, chairman and chief investment officer of Danyang Investment Group Co Ltd, said in an interview with Caixin that the capital market is still worried about the impact of the global pandemic on the real economy.

In the US, COVID-19 cases recently surged by more than 45,000 in a single day, while globally the number of infections crossed the 10-million mark, according to data compiled by Johns Hopkins University.

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