Stock Asia doesn't display any dynamics in today's trading. Only the S&P/ASX 200 in Australia and the Shanghai Composite in China registered growth at 0.29 and 0.39 percent, respectively. Other metrics revealed a decline. They include the Hong Kong Hang Seng Index, which lost 0.79%, the Shenzhen Shenzhen Composite, which fell by 0.53%, the Japanese Nikkei 225, which fell by 0.37%; and the Korean KOSPI, which fell by 0.11%.
The worsening of the situation caused by the spread of COVID-19 in China is one of the factors raising bidders' concerns. This past week, a record number of daytime episodes of infection were noted. Several new restrictive and quarantine measures have already been implemented in some major cities due to the sudden increase in morbidity. Investors are concerned that they might harm the nation's economic expansion. The authorities' announcement of new state initiatives to support the economy could not calm the bidders.
However, analysts typically predict that things will soon get better in the Chinese markets. In the coming year, the situation should stabilize, according to experts. They base their prediction on what has happened in other nations where similar events have occurred.
The largest quote decline was noted for the following Hong Kong Hang Seng Index constituents: Baidu shares, down 3.4%; Meituan, down 3.1%; Tencent Holdings, down 3%; and Net Ease, down 2.5%.
The stock quotes of businesses listed on the Shanghai Stock Exchange also reflect growth at the time: Gemdale Securities increased by 9.7%, Greenland Holdings increased by 7.5%, and China Vanke increased by 6.9%.
To stop the recession in this economic sector, the Chinese government approved a package of policies aimed at assisting the real estate development sector this month. With a contribution of about 25%, this industry ranks among the largest in China's GDP.
For 162 billion US dollars, banks have opened new credit lines for development companies. The Industrial and Commercial Bank of China, one of the biggest Chinese banks, announced opening credit lines for twelve companies totaling 655 billion yuan (roughly $95 billion).