Key takeaways
- As of today, the COVID-19 existing confirmed cases outside China more than doubled than that in China.
- China has already taken active measures to stimulate the economy ranging from liquidity support from the central bank to tax cuts and interest payment exemption for SMEs and companies affected by the epidemic. We expect to see more monetary and fiscal policies to follow.
- We believe that the short-term sharp volatility of the A-share market caused by COVID-19 and external headwinds is unlikely to change the mid-term upward trend.
