Due to the Spread of Coronavirus, Chinese Investors Dump Tourism Stocks

▴ beijing stock exchange
The stock-picking pattern is similar to the one observed during the outbreak of the SARS in 2003

Reuters News from Shanghai has confirmed that Chinese investors dumped tourism stocks and bought drugmakers and facial mask producers as coronavirus spread to more cities, raising concerns of its containment and clouding travel plans of millions of Chinese for the Lunar New Year holiday.

Authorities reported 139 new cases of pneumonia caused by the coronavirus strain over the weekend, including a third death.

Major hotel operators BTG Hotels Group Co and Shanghai Jin Jiang International Hotels Development Co tumbled over 7% on Monday morning, while tourism company Songcheng Performance Development Co slumped over 8%.

Drugmakers such as Jiangsu Sihuan Bioengineering Co and Shandong Lukang Pharmaceutical Co jumped by their 10% daily limit.

The stock-picking pattern is similar to the one observed during the outbreak of the Severe Acute Respiratory Syndrome (SARS) in 2003, but future trends hinge on whether the virus could be contained.

Tags : #coronavirus #chineseinvestorsdumpstocks #sarsin2003 #medicircle

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