The spread of the Corona virus caused a violent jolt in the global financial and stock markets, as this led to a big movement in the buying and selling of the shares of major companies for fear of a sharp drop accompanying this.
The spread of a number of viral diseases earlier had caused the decline of major global stock markets, because of the “SARS” in China in 2003 and “swine flu” in Mexico in 2009, “Ebola” in Africa in 2014, and “Zika” Brazil In 2016, global stock prices fell, on average, by 7.4 percent.
Then a recovery phase will begin, according to Michael Aristakissian, head of global market information at Finam Group, to start the ascent, reaching 23.1 percent.
During the spread of “SARS” in China in 2003, the MSCI China index decreased by 8.6 percent, to grow later by 14.7 per month to reach a growth rate of 30.9 in three months.
Aristakisian added that the major stock markets were subjected to violent tremors as a result of the “Corona” outbreak in China while China was celebrating its new year, to open its financial markets on February 3.
The Chinese took advantage of “Corona” economically.
Expert of the Russian Institute for Strategic Studies, who holds a doctorate in economics, Mikhail Bielev, talked about the financial market and how the Chinese managed to exploit this epidemic economically.
“We cannot say that the investors are behind this epidemic, but they have invested it perfectly, especially the Chinese investors who have bought shares of many companies at satisfactory prices.
The Chinese realized that the risk of this virus would later decline, which would be reflected in the stock price to return to its stable condition, so that the shares of companies would be in their hands and not in the hands of foreign partners, so that they could later impose their word on the commercial operations of these companies, as they have the largest shares.
“China has taken advantage of the crisis of low oil prices to buy it in large quantities at a low price, for domestic consumption and for strategic purposes, in the hope that the price of oil will recover to sell later”.