China’s State Assets Regulator: Impact of coronavirus outbreak on industries will mainly show in Feb
|Amid risk-off at full steam in Asia, as rising coronavirus risks globally spook investors, China State‑owned Assets Supervision and Administration (SASAC), state assets regulator, Vice Chairman Ren came out on the wires, via Reuters, noting that the impact of coronavirus outbreak on industries will mainly show in February.
The scheduled production targets and reform plans of key State-owned enterprises will not be changed due to the COVID19 epidemic, he added.
SASAC’s spokesman said that they will guide centrally held firms to extend or revise contracts with some small and medium-sized firms hit hard by coronavirus epidemic.
Further Quotes:
Coronavirus outbreak has an impact on central SOEs’ overseas projects and investments.
Will strengthen health monitoring of central SOEs’ employees to be dispatched to overseas projects for coronavirus containment.
Meanwhile, China’s Trade Body noted: some customers in Russia, Turkey, the Middle East and North Africa have stopped accepting deliveries of China’s metal products amid coronavirus outbreak.
Separately, South Korea’s President Moon expressed his concerns about the virus spread, citing that the economy is in an emergency situation due to coronavirus.
Additional Comments:
The government should use all available policies to boost the local economy.
Policy support needed to boost corporate, consumer spending at home.
FX Implications:
The demand for the higher-yielding assets is almost absent so far this Tuesday, as markets remain wary over the economic impact of the virus outbreak internationally. The virus infection rate in Japan picked up while China reported 1,886 new cases on Feb. 17th.
Therefore, Asian stocks are in a sea of red alongside the US stock futures and Treasury yields while the safe-haven yen is gaining ground near 109.70 vs. the greenback. The Chinese proxies, the Antipodeans, are the worst-hit across the fx board, with AUD/USD down 0.40% at 0.6685 while the Kiwi attacks 0.6400.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.