China at its best. Let’s decided to open the stock markets only on days with no negative news. If there is a bad news or a virus – which the government as well as many other governments seem to be stating is just a bad cold – let’s just close the stock markets to avoid the sell off.
In order to prevent a coronavirus related selloff, in an effort to prevent individual investors and institutional investors to essentially take the markets down – which could in itself be a cause for panic – the Chinese government has made a conscious decision to suspend trading on both the stock exchanges- Shanghai and Shenzhen.
This comes as the Wuhan Coronavirus gains steam with numbers and severity increasing everyday. One can only wonder if this just kicks the can down the road or if the government is able to soothe investors and traders regarding the severity and the impact Coronavirus will have. It’s a waiting game now until China decides to reopen the financial markets on Feb 3rd.