"China Related News" Posted by Samson Monday 2-17-2020

KTFA:

Samson: China quarantines its money 14 days to stop the spread of "Corona"

19:44 - 02/15/2020

The Central Bank of China announced a decision to "cleanse" the circulated banknotes, by placing them in a "stone" to limit the spread of the Corona virus. "Banks use ultraviolet radiation or very high temperatures to sterilize banknotes, before isolating them for a period of 7 to 14 days," said Deputy Governor of the Central Bank of China, Fan Yifei.

He added: "We must maintain the safety and health of users of cash flow," referring to the suspension of financial transfers between Chinese provinces, stressing the possibility of returning the banknotes to circulation after the expiration of the "quarantine" period, which depends on the severity of the epidemic in the region concerned.

These measures come in parallel with the increasing hesitation of the Chinese to use the currency for fear of catching the infection, although most consumers have been using their smartphones to pay for their daily purchases for years. According to the World Health Organization, the virus mainly transmits through the respiratory system, by touching infected areas.  LINK

Samson:  China "quips" banknotes to stop the spread of Corona

16th February, 2020

The Central Bank of China has announced a decision to "clean" banknotes in circulation by placing them in a "quarantine" with the aim of curbing the spread of the Corona virus, stressing that it will continue to support companies suffering from the epidemic.

Van Yifei, deputy governor of the Chinese Central Bank, said that banks use ultraviolet radiation or very high temperatures to sterilize banknotes, before isolating them for a period of 7 to 14 days.  He pointed out in a press conference yesterday, the possibility of returning the banknotes to circulation after the expiration of the "quarantine" period, which depends on the severity of the epidemic in the region concerned. He added, "We must maintain the safety and health of the users of cash flow," referring to the suspension of financial transfers between the Chinese provinces.

The central bank's actions come in parallel with the increasing hesitation of the Chinese to use the currency for fear of catching the infection, despite the fact that most consumers use their smartphones to pay their dues and the price of their daily purchases for years.  Moreover, before the Lunar New Year holiday, the Chinese central bank issued an "emergency issue" of banknotes of 4 billion yuan (53 million euros) in Hubei Province (center), the epicenter of the epidemic. In the face of the new respiratory epidemic, which has caused about 1,500 deaths and injured more than 66,000 people in China, public space sterilization has increased, while residents are encouraged to limit direct contact with others.

According to the World Health Organization, the Covid-19 epidemic is transmitted mainly through the respiratory tract (through saliva for example) and also through physical contact and by touching areas contaminated with the epidemic. While analysts expect monetary facilities to revive an economy paralyzed by the epidemic, Yivi only commented that the central bank would follow a "wise" monetary policy. In this context, Yifi says that the rate of doubtful debts is still "relatively low" in the banks' budget.

The Chinese Banking Regulatory Commission called on commercial banks to increase the lending rate to companies while maintaining "reasonable interest rates," according to Vice-President Liang Tao at the press conference. China will help companies resume production as soon as possible, said the Chinese deputy central bank governor.

The world's second largest economy has been affected by the rapidly expanding epidemic of Corona virus, which has killed more than 1,500 people. Liang Tao, vice-chairman of the Banking and Insurance Regulatory Commission, said at the press conference yesterday that China will accelerate the provision of loans and credit to major investment projects, and will support small and private companies affected by the spread of the virus.

Separately, Juan Changning, vice-president of the country's foreign exchange regulator, said at the conference that China is expected to maintain a slight surplus in the current account balance.

- China's economy struggles to return to activities The authorities in the Chinese capital, Beijing, imposed a 14-day self-quarantine stone on returning to the city after the holidays had ended, to prevent the spread of the new Corona virus, and threatened to punish violators. It is not yet clear how the authorities will implement the new restrictions published by the official "Beijing Daily", and whether they will apply to non-residents of Beijing or foreigners from abroad.

In an interview with Reuters on Friday, the Chinese foreign minister acknowledged the great challenge posed by the Corona virus to his country, but he defended Beijing's management of the epidemic and criticized other countries for exaggerating the reaction. Wang Yi said China has taken the most strict and decisive measures to combat the epidemic, bypassing many of the International Health Regulations and recommendations of the World Health Organization. He added: "Through our efforts ... the epidemic is under control in general."

The Chinese economy is struggling to get back to work after the lunar New Year holiday, which has been extended for ten days in an effort to contain the spread of the new highly contagious virus that infects the respiratory system, which has been officially named 2019 in-cove. The authorities announced 5,030 new cases on the Chinese mainland, including more than 120 deaths, bringing the number of injuries to 63,851 cases, and the number of deaths to 1,380 people.

Adam Camrat-Scott, an infectious disease expert at the University of Sydney's Center for International Security Studies, said the figures did not indicate that the virus was spreading to its peak. But sources said that with 500 million people affected by movement and travel restrictions, Chinese President Xi Jinping warned senior officials a few days ago that efforts to contain the virus have exceeded the range and threaten the economy.

In cities such as Beijing and Shanghai, the business center, streets and subway stations were largely deserted, and many shops and restaurants were empty or closed.

- US GDP affected -  White House economic adviser Larry Kudlow said on Friday that the outbreak of the Corona virus in China "may" shrink US GDP in the first quarter by 0.2 to 0.3 percent. "We think we may lose in the first quarter ... 0.2 or 0.3 per cent of gross domestic product," Kudlow said in an interview with Fox Business.

Investment bank Goldman Sachs said on Friday that the outbreak of the Corona virus is likely to cut 0.4 percentage points from economic growth in China in 2020, and it will also have a less negative impact on the growth of the US economy.

The bank estimates that the growth of the US economy will decline 0.4 percentage points in the first quarter, but said that growth is likely to recover in the second quarter “which will lead to a small net decline in growth in America in the whole of 2020”. Goldman Sachs revised its forecast for China's GDP growth this year to 5.5 percent from 5.9 percent.  LINK

Samson:  The Chinese president calls on his country's officials to maintain the economic system

16th February, 2020

Chinese President Xi Jinping on Sunday called on senior officials in Beijing to do everything in their power to maintain its economic and social system while the country is fighting the Corona epidemic.

The Chinese President warned officials on the third of February, that efforts to contain the Corona virus went too far threatening the economy, and days later Beijing took measures to mitigate the effects of the virus outbreak, as the epidemic became a major test for the Chinese president in how to balance the epidemic eradication and protecting the economy It is already growing at the slowest pace in nearly 30 years.

"Shi", in a speech on February 3 in front of the Standing Committee of the Political Bureau of the Communist Party, urged officials to put in place policies to support the economy even as they work to control the spread of the Corona virus, noting that the epidemic that killed more than 1500 people and infected more than 66 Alpha, so far, affects the economy, especially the service industries, and added that measures should be taken to maintain the industrial chain in China and encourage companies to resume production.

In his speech, Xi said that China "still has to adhere to this year's economic and social development goals."

He added that it is necessary to increase financial support, such as preferential policies for interest rates and loan terms, and to return migrant workers in key industries sectors to work, pointing out that major projects, especially in the field of manufacturing, must start their construction work according to the specified dates, adding that enhancing consumption It is an important protection against the impact of the epidemic.

"We should work to promote the adoption of 5G technology on a larger scale, and purchase products related to healthy life and cars," he added.   LINK

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Samson:  China cuts medium term loan interest by 10 basis points to support the economy

17th February, 2020

China's central bank slashed interest rates on its medium-term loans on Monday as policymakers attempted to absorb the economic shock caused by a coronary virus outbreak that severely disrupts corporate activities

The People's Bank of China said it had decided to cut the interest on loans of 200 billion yuan (28.65 billion dollars) from one-year medium-term facilities provided to financial institutions by 10 basis points to 3.15 percent instead of 3.25 percent. No loans in this category are due on Monday

Earlier this month, the central bank unexpectedly cut interest rates on reverse repurchase agreements by ten basis points as the outbreak accelerated

It is expected to pave the way on Monday for a cut in the country's benchmark interest rate, which is slated to be announced on Thursday

The People's Bank of China said in its statement that it pumped 100 billion yuan of reverse repurchase agreements to financial institutions on Monday, coinciding with the deadlines for agreements totaling one trillion yuan   LINK

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Samson:  Parliamentary Action: Stopping the measures to implement the China agreement is only a precaution

19:40 - 02/16/2020

The Parliamentary Labor and Social Affairs Committee affirmed on Sunday that stopping the implementation of the economic agreement with China is a precaution to avoid the spread of Corona virus inside the country, while it indicated that the new government is obligated to implement all the provisions of the agreement to revive the Iraqi economy and solve the services crisis.

Committee member Fadel Al-Fatlawi said in a statement to "Information", "The government of Prime Minister-designate Muhammad Tawfiq Allawi does not intend to reduce the terms of the agreement with China and will work to implement it fully to achieve the achievement of service projects," noting that "stopping the implementation of the agreement with China in The current time is a precaution to prevent the spread of the Coronavirus, which has recently spread to China.”

He added that "the government's action not to enter the arrivals from China is among the preventive measures taken by Iraq to immunize citizens from infection with the virus," noting that "the Allawi government will put in place a mechanism after granting it confidence in the House of Representatives to deal with China and implement the terms of the agreement."

And the Al-Fateh Alliance confirmed yesterday, Saturday, that it had waived its electoral entitlement in the cabinet of Prime Minister-designate Muhammad Tawfiq Allawi in exchange for implementing the terms of the agreement with China and the implementation of the parliament’s decision to remove foreign forces, led by American forces, from the country.  LINK