Stocks in China Trade with Limited Upsides as 1Q GDP Falls 6.8% from COVID-19 Outbreak
Stocks in China Trade with Limited Upsides as 1Q GDP Falls 6.8% from COVID-19 Outbreak.
Stocks in China moved with a limited upside after the country reported a decline of 6.8% in the first quarter GDP, despite positive sentiment in the regional markets over the finding of effective drugs for treating coronavirus.
The Shanghai Index edged 0.89% in the morning session on Friday while The Shenzhen Stock Exchange (SZSE) gained 1.03%.
The gain in China stock markets had limited upside when compared to the regional markets that average a gain of 2-3%.
The National Bureau of Statistics of China reported a contraction in its 1Q20 GDP at 6.8% from a year ago as the country is the first country to take the hit from the coronavirus outbreak since late December 2019.
Reuters cited that the contraction in 1Q was the first decline since at least 1992, when official quarterly GDP records started. However, the contraction of 6.8% was higher than the prediction of 6.5% by a Reuters poll.
The statistics bureau also stated that retail sales in China shrank 19% YoY, while the industrial production dropped 8.4% YoY. The country faced high pressure and uncertainties in the first quarter during the outbreak, and now a new challenge occurred in resuming work and production.