A single case of coronavirus on Tuesday in China may be good news for Chinese stocks, as they just may be considered the safe bet in otherwise frantic markets.
China reported one case of COVID-19 today – in Wuhan, where the outbreak originated. In fact, the country is now more concerned about incoming travelers and has imposed 14-day quarantine on international arrivals, as reported by various media.
The pandemic is now wreaking havoc in the rest of the world. Regional lockdowns, business and school closures, visa denials, and limits on mass gatherings are making headlines in the United States, Europe, and globally. Just today, the European Championship, a major soccer tournament, was postponed by the UEFA to the summer of 2012.
Meanwhile, some stocks inched higher in a rebound following the bloody Monday. Wall Street endured its steepest decline since the outbreak of the COVID-19 despite, and perhaps fueled by, desperate measures by the Federal Reserve. Specifically, the Fed has cut interest rates to the range of 0% to 0.25% and said it will pump cash into U.S. government bonds.
On Tuesday intraday, stocks were unsteady, the S&P 500 wavering between green and red territory early on after its 12% plunge (biggest since the stock market crash of 1987) the day before. Top Chinese gainers were, as always, penny stocks (CCIH, JFIN, LLIT, CPHI), pumped by insider action.
However, JD.com Inc. (Nasdaq: JD), by no means a penny stock but a top e-commerce company, recovered its Monday losses with a 7% jump to $37.88 per share, thanks to a $2 billion share buyback announcement. Other online retailers also rose, though unsteadily (BABA +2%, PDD +1%).
CooTek (Nasdaq: CTK) was also up there, at $5.82 per American depositary share – 11% higher from yesterday’s close – though it still has a long way to recover to its level a week ago, before it posted its earnings. 51job Inc. (Nasdaq: JOBS) also jumped – 4% to $59.82 per ADS – thanks to strong fourth-quarter results. Huize (Nasdaq: HUIZ), the newest Chinese company in trading, shifted 6% up $7.42 per share.
And more Chinese stocks across various industries saw green skies on Tuesday – though uncertainty looms over Wall Street.