Coronavirus impact on Chinese financial market temporary: central bank publication

Source:Xinhua Published: 2020/2/4 10:55:07

People make protective suits at the workshop of a company in Fuzhou, southeast China's Fujian Province, Feb. 2, 2020. (Xinhua/Lin Shanchuan)

China's capital market will experience only a limited and short-term impact from the novel coronavirus outbreak, said an op-ed released Monday in a publication run by the central bank.

Major Chinese benchmarks slid Monday amid concerns over the potential economic fallout of the outbreak, mainly as a result of "irrational factors," the Financial News said in an op-ed.

The temporary and limited impact from the epidemic will not change China's sound economic fundamentals and long-term trend of improvement, said the article, citing comments from the World Health Organization and the International Monetary Fund that China is capable of handling the situation.

China's economy is bolstered by its innate resilience and lasting growth momentum that cannot be easily reversed by a virus outbreak, while the overseas capital inflow of more than 10 billion yuan (about 1.44 billion US dollars) on Monday showcased global investors' confidence in the Chinese market, said the article.

The article also noted that China has the capacity to produce enough medical supplies and daily necessities to weather the outbreak, strengthening its confidence in combating the virus.

Posted in: ECONOMY

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