Following the outbreak of the deadly virus, many financial aspects revolving around the world are in danger. With deaths over 2000, some major businesses around China are on the verge of collapsing and others are even shut down.
China The ‘World’s Factory’
China is in a deep recessive economic state right now. It has pumped millions of shillings to stabilize the situation at hand. The payment of workers has become a great challenge for the country and forced it to incur debts to pay its workers.
Chinese Association of Small and Modern Enterprises says that about 60% could only cover the payments for the next one or two months and run out of money. Only 10% say that they can offer payment for a much longer period.
SMEs cover about 60% of China’s businesses and 80% employed by organizations and therefore its shutdown is a disaster to China’s economy. However, this week China’s industry group gave hope to the world because most of its operations will be back on track.
China being 2nd world’s largest economy means most countries around the globe trade and do a lot of business with China. The sale of cars in China dropped significantly following the outbreak of coronavirus. Many dealers are not in direct contact with their customers to sell their cars. Many dealers are currently dealing with their customers via online when selling cars since most showrooms are shut down by the government.
“There was barely anybody at car dealers in the first week of February as most people stayed at home,” said CPCA secretary-general Cui Dongshu.
The decline in sales of cars started when there was a trade clash between China and the United States.
Since many countries collaborate with China, many overseas clothes dealers will experience disappointments. This is because China being the Centre of clothes production and supply, most businesses that depend on it will have less or no more clothes to sell.
iPhone supply goes down following the closure of industries in China that assemble the product.
Global Stock Markets And Cryptocurrencies Affected Following The Outbreak Of The Virus And What Investors Think About The Whole Situation
Yesterday there was a great drop in performance in the stock markets and many commented on their views via the internet. the Dow Jones and S&P 500 posted their daily declines and the Dow falling 3.5%. The S&P 500 ended their day at 3.3% lower, while the Nasdaq is at 3.7%, the Milan stock market 6%.
There is also a bitcoin shutdown in most regions dealing with the cryptocurrency as Jiang, operator of mining pool BTC, confirms to us. The Chinese police went over to remote areas and ordered the closure of most of the firms.
The investors worldwide did not expect so much change in the economic sector after the outbreak however, that’s not the case. Most investors are in tension since they cannot invest further following the economic slump but they anticipate for a positive result by the next quarter.