Mainland Chinese stocks and bonds are emerging ahead of the pack from the global maelstrom unleashed by the coronavirus outbreak in the Chinese city of Wuhan.
Market veterans say the apparent success of the draconian steps China's government took to contain the virus, officially know as COVID-19, and the effectiveness of its stimulus measures are adding to the allure now of both locally listed A shares and Chinese government bonds.
The latest update from China's National Health Commission on March 20 reported that over the prior 48 hours there were no new cases in Wuhan, the city where the virus is believed to have originated in late 2019, for the first time since the commission began posting daily briefings in late January. As recently as four weeks ago, the commission was reporting thousands of new cases there each day.
Meanwhile, the 73 new cases confirmed in the rest of the country for March 18-19, mostly in Beijing, all involved infected people entering the country from abroad.
China, the first country to be hit by the virus, has become the first country to bring the outbreak under control, said Chin Ping Chia, Hong Kong-based managing director, head of business strategy and development, China A investments, with Invesco Ltd.
As a result, the panic sweeping through global financial markets now isn't being seen in China, said Mr. Chia, noting that a lot of investors appear willing to look beyond the ugly short-term hit the country's economy is taking to contain the virus.
"China has emerged as an unlikely safe haven," given both the stability of its yuan in foreign-exchange markets and the fact that the A-shares market has held up better than expected," said Aaron Costello, consultant Cambridge Associates LLC's Singapore-based regional head for Asia.