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SHANGHAI, Jan 23 (Reuters) - China stocks fell about 3% on Thursday, their biggest single-day loss in nearly nine months, as investors unloaded shares related to restaurants, cinemas, airlines and theme parks after a lockdown in the central city of Wuhan to curb a SARS-like virus. <\/p>\n
Authorities in Wuhan, the epicentre of the new coronavirus outbreak that has killed 17 and infected nearly 600 people, shut urban transport networks and suspended outgoing flights. <\/p>\n
The drastic measures spooked investors who scrambled for safe haven in bonds. <\/p>\n
Chinas blue-chip index CSI300 tanked 3.1% to 4,003.90 points, posting its biggest one-day loss in nearly nine months. Shanghai stocks lost 2.8% to 2,976.53 points. <\/p>\n
The CSI300 index marked its worst week since May 2019, while the Shanghai benchmark fell the most on-week since August last year. China financial markets will be suspended on Friday for the week-long Lunar New Year holiday. <\/p>\n
Selling intensified in afternoon trading as news trickled in about fresh cases of infection across China, and cancellation of entertainment events. <\/p>\n
The market was dominated by fears of the Wuhan coronavirus, which stirs dark memories of the 2002-2003 SARS outbreak, said Larry Hu, an economist at Macquarie Capital Ltd. <\/p>\n
We cant answer how severe it will be and when it will end, Hu wrote, adding The worst is yet to come. <\/p>\n
However, fundamentals will eventually rule for the year, as the virus impact on Chinas economy is manageable and short-lived, Hu argued. <\/p>\n
It was not clear yet whether the virus would follow the six-month life cycle of SARS, said Chi Lo, Greater China economist at BNP Paribas Asset Management. <\/p>\n
The outbreak posed bigger downside risks in Chinas sequential economic growth as consumption and the service sector is a bigger part of the economy. <\/p>\n
The sell-off was across the board, but most concentrated in transport and leisure sectors as people avoid interactions and outdoor activities. <\/p>\n
The healthcare sector was the only bright spot, as demand for vaccines and health check-ups surged following the virus outbreak, although no drugs can directly treat the flu-like symptoms of the new coronavirus. <\/p>\n
Airline shares continued to weaken, with Air China , China Eastern Airlines and China Southern Airlines dropping more than 3% each. <\/p>\n
Wanda Film slumped nearly 7%, while China Film and Beijing Enlight Media Co fell nearly 5%. <\/p>\n
Bucking the trend, biotech firms and drugmakers surged with Shandong Lukang Pharmaceutical Co, Jiangsu Sihuan Bioengineering Co and Jiangsu Lianhua Pharmaceutical Co all advancing by their daily limit of 10%. (Reporting by Shanghai Newsroom, Editing by Sherry Jacob-Phillips)<\/p>\n
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View post: (Repeats to attach to alerts) SHANGHAI, Jan 23 (Reuters) - China stocks fell about 3% on Thursday, their biggest single-day loss in nearly nine months, as investors unloaded shares related to restaurants, cinemas, airlines and theme parks after a lockdown in the central city of Wuhan to curb a SARS-like virus. Authorities in Wuhan, the epicentre of the new coronavirus outbreak that has killed 17 and infected nearly 600 people, shut urban transport networks and suspended outgoing flights. Continue reading
\nRPT-China stocks slump 3% on Wuhan lockdown over virus outbreak - Reuters<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"