MNI China Press Digest, Jan 23: Foreign Capital, Coronavirus

     BEIJING (MNI) - The following lists highlights from Chinese press reports

on Thursday:

     China is expected to see an inflow of about CNY350 billion in foreign

capital in 2020, Securities Daily reports. Citing Zhang Jun, chief economist at

Morgan Stanley Huaxin Securities, the report says foreign investors are

attracted by China's countercyclical policies and the ongoing opening of its

capital markets. Zhang said that foreign investors may prefer value investing

this year, and could favour A-shares with high profits and low valuations. 

     China has announced plans to seal off the city of Wuhan as it aims to halt

the spread of a new coronavirus which has caused 17 deaths and infected 571

people as of Wednesday, Xinhua News Agency reports. Xinhua said that public

transportation including bus, subway and ferry services would be suspended from

Thursday, and the airport and railway station will be "temporarily" closed for

departing passengers. Citizens are urged to stay in Wuhan, where the virus

originated, Xinhua added. 

     Any failure to control the coronavirus in China in the short term is likely

to impact on economic growth in Q1, according to a report by Tianfeng

Securities. The report says the biggest impact will be on consumption and

imports. If the impact on the economy continues, monetary policy may be kept at

a loosening bias, Tianfeng says. 

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

[TOPICS: M$A$$$,M$Q$$$,MI$$$$]