At a press conference in Beijing held on Tuesday, Shu Zhaohui, a senior official from China’s Ministry of Industry and Information Technology, said that only 30% of small businesses are able to reopen, with many manufacturers struggling to source labor due to the coronavirus outbreak.
Shu noted: “The smaller the size of the company, the lower the rate of work resumption.”
Larger producers are faring better, but still suffering a logistical hangover from China’s nationwide containment efforts, the South China Morning Post (SCMP).
This comes as China reports 52 new deaths in the mainland from the virus outbreak on Feb 25. vs. 71 On Feb 24.
Meanwhile, an official at China’s National Reforms and Development Commission, the country’s state planner, announced on Tuesday that regions deemed at low risk from coronavirus should fully resume normal activities and end transport bans.
Markets are seeing a recovery in the risk sentiment, as USD/JPY bounces back towards 110.50, tracking the renewed upside in the S&P 500 futures and Treasury yields. Investors remain on a profit-taking spree after the recent bloodbath.