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Wait-And-See

By far, the most commonly held view was to advise clients to wait and see. 

UBP underlined a further 5-10 percent and 13-15 percent correction to the Hong Kong and China equity benchmarks, respectively, as a «more compelling buying opportunity». Credit Suisse held a neutral rating for the asset class highlighting the dual competing forces of increasing infections versus fiscal and monetary measures.

«Our key assumption is that COVID-19, in a similar seasonal pattern to past epidemics, is contained in the spring, leading to a sharp recovery in H2 2020,» said Lombard Odier in an investment note, adding that it was neither adding or cutting risk in portfolios. 

«But we note that there is significant uncertainty around the exact path of the epidemic and the potential success of containment measures taken by different countries, with some still in an early stage. We think it is paramount that policy responds, to prevent a sharp hit to confidence that could generate recession risks.»