The pandemic has triggered a crisis in the global financial market in March. According to the IMF data, a capital flight of $100 billion occurred in emerging capital markets like China in the first quarter of 2020.
But apparently this is not the end of globalization. Professor Huang Jianbing from Fudan University School of Management points out that foreign capital will definitely flow back in once the economy of China picks up. Key indicators in the global financial market are already showing that the public has recognized China’s rapid recovery.
Professor Huang reminds the long-term investors to focus on the profitability, instead of the market cap of a company. In face of the current turbulence, investors must remain calm, restrain themselves from buying or selling impulsively, reassess their risk tolerance and enhance the portfolio diversification.
