• Government support drove an increase to spending on goods while services such as restaurants and travel were restricted. What will happen once government stimulus ends? Watch here.

How the Coronavirus is infecting China’s activity

27022020_Coronavirus impacts on China

How the Coronavirus is infecting China’s activity

Humans often take their cues from the news and their assessment of risk often coincides with the subject’s prominence in the media. However, to be a successful investor you need to see through the noise.

Here are the facts as recently reported in the Weekly survey by China’s Chamber of Commerce [and presumably propaganda] in Shanghai, which covers companies in Shanghai, Suzhou, Nanjing and the Yangtze River Delta.

Additionally, cumulative pollution levels are 20-25 per cent lower than at this time in 2019, so a substantial decline in industrial activity is evident.


  • 48 per cent of companies report their global operations are already impacted by the shutdown
  • 78 per cent of companies do not have sufficient staff to run a full production line
  • 41 per cent of companies say a lack of staff is their biggest challenge in the next 2-4 weeks; 30 per cent of companies say logistics issues will be their biggest concern
  • Over the next few months, 58 per cent of companies expect demand for their output to be lower than normal
  • 38 per cent of companies do not have sufficient masks/other supplies to protect their staff from coronavirus infection
  • 35 per cent of companies ranked a clearer explanation of requirements as the most important thing government officials could do to speed up factory opening approvals.

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Roger is the Founder and Chief Investment Officer of Montgomery Investment Management. Roger brings more than two decades of investment and financial market experience, knowledge and relationships to bear in his role as Chief Investment Officer. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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