New coronavirus strain affects stock market

Yuan Luhang
China stocks close lower on Tuesday with the biggest fall in nearly four months as countries close borders to the UK after the discovery of a more contagious coronavirus strain.
Yuan Luhang
New coronavirus strain affects stock market

China stocks closed lower on Tuesday with the biggest fall in nearly four months, as a more contagious coronavirus strain found in Britain hampered global economic recovery.

Countries across the world shut their borders to the UK on Monday due to fears about the new strain.

The resurgence of coronavirus in Europe has limited impact on China's economy and exports, Wang Han, chief economist at Industrial Securities said in a note.

However the A-share market was still affected by the latest uncertainty.

At close, Shanghai Composite Index was down 1.86 percent at 3,356.78 points, while the smaller Shenzhen Component Index dropped 1.79 percent to end at 13,882.30 points.

The tech heavy ChiNext start-up board plummeted 2.45 percent to 2,811.75 points.

Turnover on the two major bourses expanded to 957.6 billion yuan (US$146.05 billion).

Foreign investors sold 3.58 billion yuan in overseas capital via Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.

Most sectors lost with energy shares leading the losses.

Bucking the trend, liquor makers post strong performances. Shares of Kweichow Moutai hit a record high of 1,881.00 yuan.

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