China pledges more money to help companies weather coronavirus outbreak

Central bank says it will cut lending rates, increase liquidity to ensure financial stability as death toll and number of confirmed cases continue to rise

Statement comes as report by Hong Kong scientists says there could be more than 75,000 infected people in Wuhan alone

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China says it will inject more money into the financial system to ensure the coronavirus outbreak does not cause a further economic slowdown. Photo: AFP

Published: 10:44pm, 1 Feb 2020Updated: 12:51am, 15 Feb 2020

China has announced a slew of measures to ensure ample liquidity and reduce lending rates to companies affected by the coronavirus outbreak that has prompted fears of a further slowdown in the world’s second-largest economy.

A number of policy tools, including open market operations and the standing lending facility, will be used to ensure liquidity in financial markets and prevent volatility in the money markets, the People’s Bank of China (PBOC) said in a joint notice with other regulators and ministries on Saturday.

Banks and financial institutions are encouraged to increase lending to support the real economy, it said.

The announcement came as a group of Hong Kong scientists estimated that more than 75,000 people in Wuhan might have been infected with the new coronavirus between December 1 and January 25.

The study, co-authored by Professor Gabriel Leung, the dean of Hong Kong University’s medical school, and published on Friday in peer-reviewed journal The Lancet, made the claim based on the number of cases exported from Wuhan to foreign cities. The researchers then estimated the number of cases that had been exported from Wuhan to other cities in mainland China.