Chinese State Media: 'No Need To Panic'

Security personnel wearing masks cross a road at the Financial Street in central Beijing, China, as the country is hit by an outbreak of the new coronavirus, February 3, 2020. REUTERS/Jason Lee/File Photo

CNBC: ‘No need to panic,’ Chinese state media tells investors after markets plunge on coronavirus fears

* Two Chinese state media outlets on Tuesday urged investors not to panic over the plunge in mainland markets a day earlier, as concerns over the spread of a new coronavirus spooked investors.
* On Monday, the Shanghai composite closed 7.72% lower, while the Shenzhen component and Shenzhen composite dropped 8.45% and 8.41%, respectively.
* State-backed media Securities Times said it’s normal to see large fluctuations in markets following major events that occur suddenly, while China Securities Journal called the market decline a “black swan” event that will not alter China’s long-term fundamentals, according to CNBC’s translation of the Chinese-language text.

Chinese state media outlets have urged investors not to panic after mainland markets plunged on Monday amid concerns over the spread of a new coronavirus.

Monday was the first trading day for mainland Chinese markets, after the government extended the Lunar New Year closure for financial markets in a bid to stem the spread of the virus. The Shanghai composite closed 7.72% lower, while the Shenzhen component and Shenzhen composite dropped 8.45% and 8.41%, respectively.

Government-backed Securities Times said in an op-ed on Tuesday that it’s normal to see large fluctuations in markets following major events that occur suddenly, according to CNBC’s translation of the Chinese-language text.

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WNU Editor: When government tells you to not panic, that is probably when you should start to panic.On a side note, I am shocked by the above photo. That is Beijing's major financial hub, and the people and traffic there is always overwhelming. To see it empty like that .... WOW!

Update: China is going to open the faucets on spending money to stabilize the economy, but it is not going to be enough .... Exclusive: As virus fallout widens, China readies more measures to stabilize economy - sources (Reuters).

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