History lessons from 2003 for pathogen-hit Asian markets

It may still be months before the latest coronavirus outbreak in China reaches its peak, so timing is everything for capital market practitioners in the region.

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In 2003, the Hong Kong IPO market, then as now dominated by aspiring mainland corporates, started off with a bang before tailing off sharply as news of a deadly new pathogen emerged. Severe acute respiratory syndrome, or SARS, resulted in 774 deaths, with Hong Kong and Beijing hardest hit.

For a while, the city’s capital markets all but closed down. One after the other, mainland firms delayed their Hong Kong listing plans.

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