China’s financial markets will be delayed until February 3 due to the impact of the new coronavirus outbreak. Markets in China were closed for the Chinese New Year holiday, but overseas markets saw heavy selling during the period. Investors are nervous ahead of next week’s opening of financial markets.
This afternoon, the people’s bank of China, the latest circ voice…… Some analysts believe that in order to stabilize market confidence, five ministries jointly issued policies to further strengthen financial support for the prevention and control of the epidemic two days before the opening of the financial market. This also undoubtedly injected a shot in the arm to the stock market.
After the opening of financial markets on February 3, the liquidity problem in the whole market came into focus. Pan gongsheng, deputy governor of the people’s Bank of China (PBC), said in an interview with the financial times on Thursday that the central bank will provide sufficient liquidity after the opening of the financial market, increase the intensity of counter-cyclical adjustment, keep the liquidity of the financial market reasonably abundant and maintain the stable operation of money market interest rates. In particular, given the dual impact of the special period of the epidemic and the delayed opening of the market, the central bank will provide liquidity to the market through a variety of monetary policy tools such as open market operations, standing lending facilities, re-lending and rediscounting.
Huatai securities chief macro researcher li Chao believes that the outbreak may have a negative impact on economic production and life in many aspects, the economic fundamentals may be temporarily suppressed in the first quarter. Consumption bears the brunt of short-term pressure; Imports and exports are under downward pressure due to domestic and foreign demand. Manufacturing production and investment may be affected by delays in small and medium-sized enterprises and tight cash flow, while real estate investment may also be affected by the outbreak. The real GDP growth in the first quarter is likely to fall to 5.7 percent to 5.9 percent.
Therefore, in this impact, policy hedging measures are expected to be implemented. Li Chao predicted that the policy to hedge the impact of the epidemic mainly focused on monetary policy, monetary policy will maintain a prudent and slightly loose tone, is expected to adopt a combination of broad money and broad credit, to improve the growth of credit, social finance. Targeted RRR cuts are likely to be implemented in February, and interest rate cuts are likely to be implemented after the switch to a floating loan pricing benchmark was launched on March 1.
Cao yu, vice chairman of the China banking regulatory commission, believes that the financial market is affected by a variety of factors, and it is normal for the financial market to fluctuate under the impact of certain risk factors, which also conforms to financial laws. The impact of the epidemic event on China’s financial market is no exception, but this impact must be short-term, temporary because the future of a country’s financial market is determined by the fundamentals of economic and financial development. After years of unremitting reform and opening up and enhanced regulation, especially in the past two years, we have achieved success in our initial battle to prevent and defuse financial risks. As a result, financial institutions and markets have become more resilient, and their ability to withstand shocks has improved significantly. At present, the bank insurance institution to the financial market funds to maintain stability.