Coronavirus Hysteria Pounds China's Stock Market

Shanghai index dived 8%, biggest drop in 4.5 years
By Newser Editors and Wire Services
Posted Feb 3, 2020 3:34 AM CST
China Stock Market Sees Biggest Drop in 4.5 Years
People wearing face masks walk past the Shanghai Stock Exchange building in Shanghai, Monday, Feb. 3, 2020.   (AP Photo)

The benchmark Shanghai Composite index tumbled nearly 8% on Monday as Chinese regulators moved to stabilize markets jolted by a virus that has spread to more than 20 countries, slamming regional tourism and threatening global growth. The Shanghai index fell almost 9% before rebounding slightly after markets opened on Monday after a weeklong Lunar New Year holiday that was extended by three days. It was its worst day since August 2015, despite the central bank's effort to put billions of dollars of extra cash into the markets through short-term securities purchases, the AP reports.The number of people infected by the coronavirus topped 17,000 as of Sunday night, according to the Chinese government. It has killed more than 360 people, all but one in China. (Read more coronavirus stories.)

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