China to do 'everything' to shield economy from coronavirus: analyst

ABS-CBN News

Posted at Feb 03 2020 09:45 AM | Updated as of Feb 03 2020 10:05 AM

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MANILA -- China is expected to do "everything" to defend its economy, as it braces for a selloff on Monday due to fears over the fast-spreading new coronavirus strain that claimed 260 lives, an analyst said.

China's central bank, the PBOC, on Sunday committed to pump 1.2 trillion yuan ($173 billion) into the economy. It is also expected to keep the yuan afloat, said Stephen Innes, Asia Pacific market strategist at AxiCorp.

"The Chinese government is absolutely not going to roll over and accept defeat if the economy goes down," Innes told ANC's Market Edge from Bangkok.

China's stock market, which will reopen on Monday after an extended Lunar New Year holiday to slow the spread of the virus, will likely open "considerably lower," he said.

"Peak fear, not peak virus. It's the fear that's embedded in the markets that really driving sentiment," he said.