On Easter Day, South Asian country Sri Lanka unfortunately suffered a bloody terror, and the country's stock market also fell. Sri Lanka's major stock index traded at its lowest point since December 2012 on Wednesday, with investors selling off the country's risk assets for the second day in a row after Sunday's Easter bomb attack, according to foreign media sources.
Historical movements in the Sri Lankan stock market
On the 21st local time, there were 8 explosions in Sri Lanka, including 4 hotels, 3 churches and a residential area in the capital Colombo and other places. As of press time, according to the latest report of Xinhua News Agency, the Sri Lankan police said on the 24th that the serial explosion attack that occurred in the country on the 21st has killed 359 people and injured more than 500 people.
On Tuesday (23rd), the first trading day after the bombing, Sri Lankan stocks fell 3.63 percent on the day, the biggest one-day drop in more than seven years, attributed to panic selling by retail investors.
On the 23rd, the website of the Chinese Embassy in Sri Lanka issued a notice saying that Chinese citizens should not go to Sri Lanka in the near future. Given the current situation in Sri Lanka, if Chinese citizens insist on going after the reminder is issued, it will pose a huge security risk to the person concerned and make it difficult for the embassy to provide effective assistance. The resulting costs will be borne by the individual.
On April 22, 2019, local time, according to foreign media reports, there was another bombing in Sri Lanka. This is the ninth bombing in Sri Lanka since the 21st. Image source: Oriental IC Copyright Works Please do not reprint
The impact on A-share companies is geometric
According to reports, among the A-share listed companies in China, 8 companies have business in Sri Lanka, mainly including CYTS, Utrust Tourism, Zhongfutong, Huaxi Energy, China Super Holdings, Dagang Road Machine, China Merchants Port, Kelly Tai, etc.
Analysts believe that given that the Sri Lankan government has now announced a curfew, closed airports, shut down social media, etc., as the country enters a state of emergency, the business of the relevant companies may be slightly affected. The extent of the impact depends on the subsequent progress of the event.
On April 22, Dagang Road Machinery, Huaxi Energy and other listed companies responded to the possible impact of the Sri Lankan explosion on the company.
The National Highway Development Authority of Sri Lanka is one of the company's main customers and that the bombing in the country did not have any material impact on the company's business and personnel, the announcement said. According to public information, Dagang Road Machinery is a high-tech enterprise specializing in the development, design, production, sales, technical services and general contracting of domestic and foreign projects.
Huaxi Energy, which is mainly engaged in boiler manufacturing business, responded that after verification with the person in charge of the EPC EPC general contract project in Colombo, Sri Lanka, the explosion site was about 20 kilometers away from the company's project site, the explosion did not affect the project and the project site staff, the company did not find any casualties and property losses, and the project construction was normal. The project contract totals $51 million and is currently being implemented.
Sri Lankan ministers have previously said two domestic Islamist groups in Sri Lanka, including the NTJ (National Thowheed Jamath), are responsible for the Easter bombings. He also said preliminary investigations showed the Easter attacks were retaliatory for mosque attacks in New Zealand. People attend the funeral of the victims of the bombing on April 23.
However, for domestic A-share companies, the ones most affected by the Sri Lanka bombings are tourism companies. CYTS said that after the incident, CYTS Aerotel contacted tourists and local reception units at the first time to confirm that CYTS Aerotel's group, independent travel, customization and other types of tourists in Sri Lanka are safe, and the itinerary has not been affected for the time being.
Utrust travel customer service said that the company's products have not encountered problems, follow-up impact, will inform guests. The 2018 annual report shows that Zhongfutong and Huaxi Energy have certain businesses in Sri Lanka. According to the 2018 annual report, some of the products of China Super Holdings are exported to Sri Lanka. (Zhongxin Jingwei APP)