Wu Xiaobo also noted that new companies, which pulled their shutters down in January and February, are the most severely affected by the outbreak. Around 55 per cent of the companies that have gone bankrupt were startups, with a lifetime of below three years.

According to the report, companies in the hospitality and retail industry have been going through a particularly rough time because people were advised to practice social distancing and avoid public places.

The China Chain Store and Franchise Association (CCFA) also had made similar observations about two months ago, which showed that retail shops in China were experiencing a 50 per cent sales drop, with restaurants making only 30 per cent of their normal profits. Other seriously impacted sectors include rental services, construction, and farming.