My initial reaction to the article was that it doesn't sound like the cash injection has much to do with the corona virus. Isn't the reaction to the virus somewhat overblown?
> adding the total liquidity in the banking system will be 900 billion yuan higher than the same period in 2019 after the injection
In other words, 300 billion yuan less without the cash injection. I may be wrong, as I don't see the reaction to the outbreak first hand, but it sounds like this is not just about the virus.
The Chinese financial system is weak, as borrowers come under stress from a lack of business and can't pay and lenders pull back, the government will need to inject more and more liquidity into the system to get everyone to chill.
The direct linkages to the economy aren't the killer, it's that it's hitting at a time when the system's credit (immune) system is already not at it's strongest that worries policymakers.
> adding the total liquidity in the banking system will be 900 billion yuan higher than the same period in 2019 after the injection
In other words, 300 billion yuan less without the cash injection. I may be wrong, as I don't see the reaction to the outbreak first hand, but it sounds like this is not just about the virus.