Chinese official says Hong Kong evacuations would be an “over-reaction”
Sue-Lin Wong reports from Hong Kong
A top Chinese official in Hong Kong said any evacuations of foreign citizens and diplomats from the Asian financial centre due to the coronavirus outbreak would be an “over-reaction.”
Xie Feng, China’s foreign ministry commissioner in Hong Kong, made the comments after US airlines United and American said on Wednesday they were suspending flights to Hong Kong, in a blow to territory.
The United States and Australia are among several countries that have barred entry to foreign nationals flying from mainland China. There are growing concerns for people flying from Hong Kong to other countries that similar restrictions will be implemented.
The Commissioner, addressing the territory’s diplomatic corps on Friday, said: “It is our hope that you will assess the outbreak in a science-based and calm manner and avoid overreaction such as evacuation of citizens and diplomats,” noting that the World Health Organisation does not recommend the evacuation of citizens from Hong Kong at present.
As the coronavirus spreads to dozens of countries, Mr Xie called the “shocking hatred and violence” directed against some people of Chinese citizenship and descent around the world “lethal.” “The novel coronavirus will be defeated but the virus of discrimination, hatred and racism will have far more devastating impacts if left unchecked.”
Foxconn adds production line for medical face masks
Kathrin Hille reports from Taipei
Apple supplier Foxconn, the world’s largest electronics manufacturer, is building a production line for face masks which it expects to have a daily capacity of 2m masks by the end of the month.
“There is no change in the company’s main business,” Foxconn Industrial, one of the Taiwanese company’s biggest affiliates in China which is normally focused on factory automation, said in a statement to the Shanghai Stock Exchange on Friday. “The addition of a production line for medical face masks is for the purpose to quickly meet the needs of fighting the epidemic based on the local government’s demands against the background of prevention of novel coronavirus pneumonia.”
The company said the mask line at a plant in Shenzhen had started trial production, a revelation which indicates that the Chinese government’s ban on all but essential manufacturers returning to work before next Monday, is being implemented flexibly.
Foxconn Industrial said the masks produced at the new line were intended mainly to protect its own workers against infection, but the company might provide some externally as well later.
Hon Hai, the group’s Taiwan-listed flagship, has refused to provide details to the media on how its factories in China, where it employs roughly 1m people, are affected by the outbreak. It did not communicate the mask production measure to shareholders in Taiwan.
Hong Kong banks plan relief measures for borrowers
Hudson Lockett reports from Hong Kong
Hong Kong banks are planning to roll out temporary relief measures for customers put in difficult straits by the coronavirus, according to the territory’s de facto central bank.
The Hong Kong Monetary Authority said in a letter yesterday that the outbreak was “adversely affecting the Hong Kong economy” and that some banks were considering measures, including principal moratorium for residential and commercial mortgages, fee reduction for credit card borrowing and restructuring of repayment schedules for corporate loans.
The HKMA said it encouraged other banks to follow suit and added that lenders “should adopt a sympathetic stance in dealing with customers facing financial stress due to the novel coronavirus”.
What’s happening on Friday
An update on the latest developments
– Li Wenliang, the doctor who warned of the virus’s outbreak, has died in Wuhan. News of his death first began circulating on Thursday and was confirmed overnight, prompting an outpouring of grief and anger in China. Total deaths from the coronavirus reached 636 on Friday.
– Cases of coronavirus have trebled on a cruise ship that is quarantined off the coast of Japan. The Diamond Princess, which is carrying around 3,700 passengers, now has a total of 61 cases.
– Hong Kong doctors, who say they are dealing with 80 to 90 suspected cases a day, have warned over a shortage of medical equipment. Concerns over Hong Kong and Macau have also risen elsewhere – Taiwan is requiring visitors from the two cities to self-quarantine for 14 days.
Toyota extends shutdown of its plants in China
Kana Inagaki reports from Tokyo
Toyota has extended the shutdown of its plants in China until Feb 16 as the coronavirus outbreak wreaks havoc on global supply chains.
The world’s second-largest carmaker, which has 12 plants in China for cars and vehicle components, said its decision took into account guidelines from local authorities and issues to do with its parts supply and logistics. It had originally hoped to restart operations from Monday.
“We are treating the week starting from Feb 10 as a period for our team to prepare for the return to normal operations from next week and beyond,” the company said in a statement on Friday.
The decision by Toyota came a day after the carmaker said it expected a dent to car sales in China as the spreading epidemic depresses consumer spending.
Rival Fiat Chrysler has also warned that one of its European plants will be forced to halt production in a matter of weeks, as its struggles to source key parts from Chinese suppliers.
S&P says coronavirus will hit Chinese GDP in 2020
S&P on Friday said it expects China GDP growth to slow to 5 per cent in 2020, on the back of the economic impact of the coronavirus.
The rating agency added that it expects “lost ground” to be made up the following year.
It added that it anticipates a “material effect on global growth”:
The global impact will be felt through four real economy channels: sharply reduced tourism revenues, lower exports of consumer and capital goods, lower commodity prices, and industrial supply-chain disruptions. These spillovers could become larger if markets start to price in the risk of a material global slowdown and financial conditions tighten as risk premia rise across asset classes.
In 2019, the Chinese economy grew 6.1 per cent, the lowest rate since 1990.
Hong Kong and Macau citizens required to self-quarantine in Taiwan
Kathrin Hille reports from Taipei
Hong Kong and Macau citizens visiting Taiwan are required to self-quarantine at home for 14 days after entry, as of today.
The move comes alongside heightened worries over those who have passed through Hong Kong and Macau, as well as mainland China.
Foreign nationals who don’t have Taiwan resident status and visited or were residents of mainland China, Hong Kong or Macau in the past 14 days are also not allowed to enter, as of today.
Chinese nationals are currently not allowed to enter Taiwan, in line with measures that took effect late last month.
Cases of virus treble on board quarantined cruise ship in Japan
Robin Harding reports from Tokyo
Japan has found another 41 cases of coronavirus on board the Diamond Princess, a cruise ship in quarantine off Yokohama, bringing the total on the vessel to 61. The cases were found after tests on 273 passengers who either showed symptoms or had close contact with those who did, according to the health ministry.
In total, there are around 3,700 passengers on board the ship. Diagnosed cases of coronavirus are being evacuated to hospitals in the Greater Tokyo area while all the remaining passengers have been asked to quarantine themselves in their cabins for two weeks.
Following criticism for an overly relaxed approach to the new pathogen, prime minister Shinzo Abe vowed to step up Japan’s response, saying yesterday that foreign passengers on board the Westerdam, another cruise ship that was due to visit the country, will not be permitted to disembark.
Hong Kong doctors warn of shortages of protective equipment
Primrose Riordan reports from Hong Kong
Hong Kong doctors who say they are dealing with 80 to 90 suspected cases of coronavirus each day are warning that they could run out of equipment to protect them from the novel coronavirus in as soon as a weeks’ time, and have accused the local government of missteps in handling the outbreak.
There have been at least 24 confirmed cases and one death in the city linked to the virus. Local authorities have declined calls from medical staff to shut all border crossings with mainland China. Hospital workers began strike action on Monday.
Dr Arisina Ma, the president of the Hong Kong Doctors Association, said due to equipment shortages, the hospital authority had advised that only doctors in “high risk” areas which were dealing with suspected novel coronavirus cases should wear the full suite of medical protective equipment, such as masks, hair nets, and other facial and body coverings.
“Even in the high risk area we worry that supply might run low soon, if we don’t have new supply maybe some of the N95 mask or personal protective equipment may run out in a month’s time or even in a week’s time,” Dr Ma said.
She said private hospitals have stopped taking any suspected cases of the virus, and were redirecting people to public hospitals, which are already under pressure.
Hong Kong authorities announced this week they would shut some border crossings with mainland China and that people coming across the border would be quarantined for 14 days from Saturday.
Dr Ma said the Hong Kong government missed a chance to limit the spread of the virus by implementing border controls and now it was not clear how the quarantine would work.
“I have no idea where the government can find quarantine facilities,” Dr Ma said.
Chinese whistleblower doctor dies after coronavirus infection
Li Wenliang, the Chinese doctor who became a hero to millions for raising the alarm over the coronavirus epidemic, died after he became infected with the virus.
Li shot to fame when he warned fellow medics in an online chat group in December that seven new pneumonia cases had been identified. His comments were shared on Weibo with the hashtag “Wuhan SARS” before the posts were scrubbed by censors. He was then accused of “rumour mongering” by Chinese authorities as they scrambled to downplay the outbreak.
Read our full coverage of Li Wenliang
Death toll hits 636 in China
The number of deaths in China from novel coronavirus rose to 636 as of the end of Thursday, Chinese health authorities announced. China has confirmed 31,161 cases of the virus.
Melco shelves Crown share purchase over coronavirus
Jamie Smyth reports from Sydney
Melco Resorts and Entertainment, the Hong-Kong-listed casino company, has abandoned plans to raise its stake in Australian rival Crown Resorts to 19.99 per cent over the significant hit to its business from the coronavirus.
Melco, which is controlled by Lawrence Ho, said it would reassess all its non-core investments in light of the severe drop in tourism in Asia to integrated resorts facilities following the outbreak of the virus, which has shuttered all casinos in Macau.
“As a result of this decision, Melco will not pursue its planned investment in Australia for the second tranche of shares in Crown Resorts Limited (“Crown”)…at this time, its capital needs to be deployed on its core assets,” said Melco in a statement.
In May Melco announced it would spend A$1.76bn ($1.2bn) on a 19.99 per cent stake in Crown, which is controlled by Australian billionaire James Packer, a former business associate of Mr Ho. The Hong-Kong listed casino operator has already acquired an initial 10 per cent stake in Crown but the remaining shares have not changed hands as Australian authorities have initiated a probity investigation into Crown and the intended share sale to Melco.
Shares in Macau casino operators have fallen sharply since the territory ordered the temporary closure of all resorts due to the coronavirus.
