At the beginning of 2020, the outbreak of COVID-19 in Wuhan has brought a relatively large negative impact on the Chinese economy. Public opinion believes that for a period of time in the future, the downward pressure on our country's economy will increase significantly, and the instability of financial market operations will also increase significantly. Liu Zhibiao, dean of the Yangtze River Institute of Industrial Economics of Nanjing University, answered two questions in an interview with zhonghongwang:1、Affected by the epidemic, a number of experts previously suggested that the opening of the A shares should be postponed in an interview with a reporter from zhonghongwang. How to view the response of the A-share market to the epidemic? Liu Zhibiao believes that there are three main reflections: one is the epidemic has an impact on economic fundamentals, which in turn affects stock prices. Second, the epidemic caused investors to panic, which led to a decline in stock prices. The third is the short-selling effect of market investors.2、Recently, five departments including the Central Bank, Ministry of Finance, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, and Foreign Exchange Administration jointly issued the "Notice on Further Strengthening Financial Support to Prevent and Control the Novel Coronavirus Pneumonia Epidemic" to actively respond to the impact of the epidemic on the capital market and how to interpret the financial risks that the epidemic may cause. Liu Zhibiao believes that the epidemic has a direct impact on the A-share market. There are also some relatively indirect effects that will cause major adverse factors to the national economy. At the same time, the fall in the stock market will cause great systemic risks to the financial system.
