Chinese market plunges Chinese stocks recorded their worst day in years as investors finally got a chance to react to the worsening coronavirus outbreak.
The Shanghai Composite (SHCOMP) plummeted 7.7% and the Shenzhen Component Index fell nearly 8.5% on their first day of trading after an extended Lunar New Year holiday. They had been closed since January 24.
The losses wiped out a combined $445 billion in market valueThe plunge delivered Shanghai its worst day since August 2015's "Black Monday," when global markets were rattled by fears of an economic slowdown in China. Shenzhen, meanwhile, hadn't recorded a single-day percentage drop this bad since 2007.
China's currency also fell. The yuan sank 1.6% in onshore trading, dropping below seven to one US dollar in its first day back from the holiday break. The yuan also weakened below the seven mark offshore, where it moves more freely and has been trading since last week.
While global markets have had several days to weigh the rapid spread of the coronavirus, this is the first chance that mainland China has had to react in more than a week. Before the holiday, the number of cases numbered roughly 800 — now, there are more than 17,000.
Markets were originally due to reopen last Friday, but the Chinese government extended the holiday as it worked to control the outbreak.