China state council announces more measures to ease the impact from the coronavirus outbreak
- To increase yuan re-lending, re-discount quota by ¥500 billion
- Encourages banks to delay interest payment for eligible firms until 30 June
- Encourages commercial banks to step up lending to small firms
- Says that will push lending rates significantly lower
- Says to lower interest rates for loans to small and agriculture businesses by 0.25%
- To exempt VAT for small businesses in Hubei from March to end-May
Although a lot of major corporations in China may look to resume business/production already, smaller companies and businesses are the biggest losers in the virus outbreak saga.
It is going to take some time for China to go back to full capacity but the real issue will be trying to convince the general population and consumers to resume their normal day-to-day activities i.e. shopping, eating out, travelling, spending on outdoor activities etc.