Slow China Restart Could Inflict Bigger Pain, Nomura Says

The coronavirus outbreak may have a bigger and longer-term impact on China’s economy than thought, as fewer migrant workers have returned for work than in previous years and business activities have been slow to pick up, according to Nomura Holdings Inc, Bloomberg News reported. To contain the spread of the novel coronavirus pneumonia (NCP), Chinese authorities have ordered city lockdowns and extended holidays at the expense of near-term economic growth. The impact of such efforts could extend well into March owing to the slow resumption of businesses, which will likely result in rising numbers of bankruptcies, mass layoffs and worsening demand, economists including Lu Ting, chief China economist at Nomura in Hong Kong, wrote in a note. Read more