China prepares to roll out more measures to bolster economy

31 2020 people wearing face masks stand with their groceries outside a Tommy Hilfiger fashion store in Kunming China

31 2020 people wearing face masks stand with their groceries outside a Tommy Hilfiger fashion store in Kunming China

On Sunday, the People's Bank of China announced that it would inject 1.7 trillion yuan worth of liquidity into the markets by open market reverse repo operations, reports said.

China Development Bank reportedly plans to issue up to 14.25 billion yuan ($2.04 billion) of one-year special bonds on Thursday to raise funds to help tackle the epidemic.

The People's Bank of China will add a net 150 billion yuan ($21.7 billion) to money markets on Monday, according to Bloomberg calculations based on a statement on Sunday. A total of 23 other countries had confirmed 153 cases of infection.

However, the biggest hit to the economy is likely to be from China's army of consumers saying at home, observers said, with Moody's analysts expecting spending on transportation, retail, tourism and entertainment to be hammered.

Since breaking out in China, the virus has killed 425 people in the country, exceeding the 349 dead in the Chinese mainland from the Severe Acute Respiratory Syndrome (SARS) outbreak of 2002-03, which eventually killed almost 800 globally.

Investors in the China market are hopeful that the economy of China would kick back when the market opens on Monday.

Ashley Graham and Justin Ervin reveal meaning behind newborn son's name
Watch as Ashley and Justin talk about pregnancy, parenthood, and more while interacting with their son. You have reacted on " ASHLEY GRAHAM AND JUSTIN ERVIN INTRODUCE THEIR".

This marks the largest single-day reverse repo operation China's central bank has ever conducted.

The outbreak has to some extent plunged China into isolation from the world, with rising fears prompting governments in countries including the U.S., Japan and Australia to bar entry to travelers from China or to restrict flights from or to the virus-stricken country.

China unveiled a raft of measures over the weekend to aid companies hit by the coronavirus outbreak and also shore up financial markets, which are bracing for a sell-off when trading re-starts on Monday. Shanghai authorities extended the Lunar New Year holiday until February 9. Beijing, the country's administrative center, stopped short of declaring this week a holiday. The US, India, Australia, Indonesia, Singapore, Israel, Russia, New Zealand and the Philippines have all imposed restrictions on visitors from China.

The sources said the government is debating whether to lower the planned 2020 economic growth target of around 6 percent, which many private sector economists see as well beyond China's reach.

Although they "will take some pressure off of banks and borrowers, the rate cuts are too marginal to provide a substantial offset to the drag on economic activity from the Coronavirus outbreak", he said. "First-quarter GDP growth could dip below 5 percent and the impact may persist in the second quarter", said Wang Jun, chief economist at Zhongyuan Bank.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.