The “2019 Novel Coronavirus” or more commonly coronavirus is capable of mutation, and this is what makes the virus all the way more dangerous.
Presently coronavirus has claimed the lives of at least 427 people, and more than 20,600 cases of this infection have already been confirmed.
The new fact is that the disease has impacted the economy, disturbing the investor confidence for that matter. There is also proof that the online banking sector is having a setback as well.
Online banking sector of China
These days banking is done in many ways starting from online banking such as net banking, mobile banking to cash to cash banking. Online banking also includes stock exchange as a large part of the country’s economy is based completely on the stock exchange.
Taking about the banking sector of China, then it was majorly hit with the onset of the coronavirus. The Chinese government had to cancel all the international flights from 4th February 2020. In fact, the work atmosphere in China is totally disrupted. Banks in many places are shut down, and thus online banking has also come to a halt.
Economic growth and investment
The country had an economic growth of 6.1% as of last year and it is the slowest as compared to the growth rate in the three decades.
The long trade war of China with the United States was a contributing reason to the lower economic growth in the previous decades. However, things started to become better after the countries sign the deals keeping the tariff in place.
The repercussions of coronavirus in the economy are now setting a series of setbacks starting from Bank failures to the contagion fears and now the central bank has to become generous enough coming up with the provision of market liquidity.
Major investors in China are losing confidence from their market, and thus the overall economy has fallen to four years low. The main fact that the investors are losing confidence as the epicentre of the coronavirus is china. Due to this reason, the Chinese market has come to a standstill. On the other hand, people in China are afraid of going out of their house and thus are mostly relying on online banking to meet their banking needs.
The central bank is expected to come up with 1.2 trillion Yuan for the financial system starting Monday which would be the largest single-day addition on the record however the net figure is lower.
Clearly, coronavirus is not just a disease targeting the health of the people and it has had its contribution towards pulling the economy backward after a decade of poor performance already. On the same note, the country is currently bracing towards the fall down with the recovery plan according to the advice from the experts.