Coronavirus' inverse effect: These Chinese stocks are doing really well

Coronavirus jitters have roiled stock markets across the world on concerns that the global economy could slow down as the world's second-largest economy struggles to contain the outbreak. The virus attracted global attention in January end due to rising number of infections and deaths in China, the epicentre of Coronavirus. Shanghai Composite Index which stood at 3,060 on January 22, 2020 plunged 284 points to 2,746 on February 3. Currently, the index stands at 2,988.

Similarly, Dow Jones fell from 28,992 on January 21 to 26,957 yesterday. S&P 500 has lost 221 points during the period.

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In Asia, Nikkei which stood at 23,864 on January 21 has slipped 1,921 points. South Korea's Kospi too has declined 185 points from 2,239 on January 21 to 2,054 today.  

However, there is a flip side to the fall in market indices. Some stocks in China have bucked the trend. According to excerpts from Hurun Rich List, Coronavirus has led to mini booms for pharmaceuticals vaccines, online education and online games in China.

While, rising demand for medicines during the epidemic outbreak may have led stocks of pharma firms higher, shutting of schools since Chinese New Year is seen as a factor behind the surge in stocks of online education and online gaming firms.

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Stock of online education provider Genshuixue which is headed by Chinese entrepreneur Chen Xiangdong rose by a third since January end. Stock of TAL Education which is headed by Zhang Bangxin rose from $46.68 on January 24 to $56.30 on NYSE yesterday.

Stocks of online game companies such as 37 Interactive Entertainment, Perfect World, Yoozoo, Baidu's online video platform iQiyi too have risen 29%, 17%, 8% and 8%, respectively. Pharma firms specialising in vaccinations that clocked strong gains include Hualan Biological Engineering (23%), Biokangtai up 15% and Zhifei Biological Products, which was up 8%.

Share prices of hospitality and travel firms fell since January end since people of Wuhan and some other parts of China were locked in their homes to prevent the spread of Coronavirus.  Stocks of hospitality and travel companies such as Haidilao fell 12% and Meituan-Dianping lost 15%  since the end of January.