The ongoing Wuhan coronavirus epidemic in China has managed to wreak havoc on the country's still-recovering economy. The latest reports from health officials have pegged the total death toll to 132 confirmed fatalities. Officials have also confirmed more than 6,078 cases of infection in China. Out of the 6,078 cases reported, 3,554 cases are from China's Hubei province.
This week, the outbreak has forced financial regulators to temporarily suspend trading within the stock exchanges in Shanghai and Shenzhen. The deadly outbreak has also spooked major foreign manufacturers, prompting some companies to pull out its foreign workers from the country.
Stock Market Trading Suspension
Since Thursday last week, the stock market in Shanghai has remained closed. The shutdown was meant to last until February 3 as part of the State Council's order to extend the Lunar New Year holidays. However, the suspension could be extended even further as the gathering of people on the trading floor could increase the risk of infections. The Shenzhen Stock Exchange issued a similar announcement, stating that it will observe a similar suspension in trading.
Meanwhile, the Hong Kong Stock Exchange announced that it will be resuming trading on Wednesday this week. However, it has decided to cancel its yearly ceremony to welcome the New Year. The Hong Kong Exchanges and Clearing Limited (HKEX) issued a statement on Monday, mentioned that it has canceled the ceremony as it will increase the risk of coronavirus infection. The exchange's operator added that the health and safety of its guests and colleagues remain its highest priority.
The State Council officially decided to extend the country's Lunar New Year holidays in an attempt to give health officials more time to control the pneumonia epidemic. The government has also rolled out various measures to prevent the disease from spreading, this included the banning of public gatherings and the lockdown of public transportation in severely affected areas.
Foreign Workers Evacuate
Concerns over the seriousness of the outbreak have also reached foreign manufacturers with existing operations in China. Automakers in China announced this week that they have started withdrawing foreign workers from their offices in China. Some have reportedly also started deliberating the possibility of temporarily halting manufacturing operations amid the ongoing outbreak.
Major automotive manufacturers such as GM, Nissan, and Honda currently have existing facilities in Wuhan, the city where the virus had reportedly originated. Honda Motor and PSA Group have already announced that they are pulling out workers from their facilities in Wuhan. Nissan also announced plans to withdraw its Japanese employees from the city. Meanwhile, Toyota issued a travel restriction for its employees to China. Toyota doesn't have any manufacturing plants in China, but its employees regularly visit the country for business purposes.
