China Vice FinMin Yu: Will ensure fiscal funding for coronavirus control
Following the comments from the Chinese central bank (PBOC), the country’s Vice Finance Minister Yu also comments on the measures that are rolled out to counter the negative impact of the China coronavirus outbreak on the economy.
Key Quotes:
China has allocated 66.74 bln yuan in fiscal funds for virus control.
Will ensure fiscal funding for virus control.
China's coronavirus prevention and control at crucial stage.
Will implement tax and fee cuts.
Separately, the PBOC Vice Governor Pan said that they will strengthen counter-cyclical adjustments, promote healthy and steady development of the economy.
More Comments:
China has ample policy tools to cope with downward pressure on economy.
It's more important to maintain economic growth.
Falls in markets rates will be reflected in loan prime rate (LPR).
Will maintain ample liquidity, deepen interest rate reform.
Will step up policy support for key sectors.
Possible that implementation of asset management products rules could be delayed.
China's fx reserves in Jan increased.
Closely watching coronavirus impact on China's economy.
Virus impact could disrupt economic activity in Q1.
Expects China's economy to recover once virus is put under control.
There is ample monetary policy tools to offset virus impact on economy, preparing policy reserves.
PBOC is preparing policy reserves to cope with virus impact.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
