Beijing released the major economic data for the first two months of 2020 this morning after the Federal Reserve cut rates to zero.
A global slowdown causes more troubles for Chinese exporters and forces Beijing to accept lower growth in 2020.
The PBOC seems more in line with the view that the COVID-19 is a supply-side shock and easing monetary policy can only help to a certain extent.
Chinese markets have seen remarkably different reactions to the COVID-19 outbreak over the past few weeks. The A-share market has fully recovered from the 12% sell-off in late January and early February. It has now rebounded back to where it was before the outbreak with the CSI 300 index up 1% year-to-date.