Passengers, wearing masks, walk outside the railway station in Shanghai on Sunday. Reuters

China is pulling out all stops to tackle the spread of the coronavirus on a war footing. The virus has affected nearly 12,000 people in China and the world over. It has hit the economy too: already major airlines have either cancelled or reduced flights to the country.

Prices of copper have fallen while those of gold have risen.

The virus, which originated in China, has spread to more than 12 countries. The problem is that Chinese nationals face an onslaught of prejudice from citizens of other countries where they are staying. This includes countries like Canada and regions as far off as Europe.

Shops have blocked entry for Chinese tourists, and the country's meat trade has been trolled.

China’s central bank said it will inject 1.2 trillion yuan ($174 billion) worth of liquidity into the markets via reverse repo operations on Monday as its stock markets prepare to reopen amid an outbreak of a new coronavirus.

Chinese authorities have pledged to use various monetary policy tools to ensure liquidity remains reasonably ample and to support firms affected by the virus epidemic, which has so far claimed 305 lives, all but one in China.

The People’s Bank of China made the announcement in a statement on Sunday, adding the total liquidity in the banking system will be 900 billion yuan higher than the same period in 2019 after the injection.

According to Reuters calculations based on official central bank data, 1.05 trillion yuan worth of reverse repos are set to mature on Monday, meaning that 150 billion yuan in net cash will be injected.

Investors are bracing for a volatile session in Chinese markets when onshore trades resume on Monday after a break for the Lunar New Year which was extended by the government.

China’s stock, currency and bond markets have all been closed since Jan. 23 and had been due to re-open last Friday.

There will be no further delays to the reopening, the securities market regulator said in an interview in the People’s Daily newspaper on Sunday.

The China Securities Regulatory Commission (CSRC) said it had taken the decision after balancing various factors, and believed the outbreak’s impact on the market would be short term.

To support firms affected by the epidemic, the CSRC said companies that had expiring stock pledge agreements could apply for extensions with securities firms, and it would urge corporate bond investors to extend the maturity dates of debt.

The CSRC is also considering launching hedging tools for the A-share market to help alleviate market panic and will suspend evening sessions of futures trading starting from Monday, it said.

“We believe that the successive introduction and implementation of policy measures will play a better role in improving market expectations and preventing irrational behaviour,” it told the People’s Daily.

China is facing mounting isolation as other countries introduce travel curbs, airlines suspend flights and governments evacuate their citizens, risking worsening a slowdown in the world’s second-largest economy.

State news agency Xinhua said on Sunday that China’s economy was resilient enough to counter the shock caused by the virus, and said remarks made by a US federal official - whom it did not name - that the virus could bring jobs back to the United States were “self-centered, unprofessional and unethical”.

US Secretary of Commerce Wilbur Ross said last week that the virus could force companies to re-evaluate their supply chains, potentially returning some jobs to the United States.

“The remarks only served to taint the US image as a major global player,” Xinhua said in the commentary.

“An outbreak of a disease like this could not be the basis for multinational companies to make serious and long-term investment decisions in China...If the Chinese economy slows drastically, the US economy will also suffer.”

 China said on Sunday it will help firms that produce vital goods resume work as soon as possible, state broadcaster CCTV reported on Sunday, citing a meeting chaired by Chinese Premier Li Keqiang.

Non-essential sectors, however, will be allowed flexibility in how they resume operations after the Lunar New Year holiday as the country seeks to stem spread of the coronavirus outbreak.

CCTV also said China will speed up construction of hospitals in Hubei province, the epicenter of the outbreak, and ensure sufficient medical supplies to deal with the virus there and in Wuhan city. However, a string of countries have ramped up border controls. Singapore and the United States announced measures on Friday to ban foreign nationals who have recently been to china from entering their territories, and Australia followed suit on Saturday.

Russia introduced visa restrictions and will start evacuating Russian citizens on Monday and Tuesday, Interfax and TASS news agencies reported.

The Philippines expanded its travel ban to include all foreigners coming from china, widening an earlier restriction that covered only those from Hubei province. Indonesia also barred visitors who have been in china for 14 days.

More than 100 Germans and family members landed in Frankfurt on Saturday after being evacuated from Wuhan. Around 250 Indonesians were also evacuated from Hubei.

Japan plans to send another chartered plane mid-week or later to bring back Japanese nationals who are still in Hubei, its foreign ministry said on Sunday.

Japan has barred foreigners who have been in Hubei from entering the country. South Korea will impose a similar entry ban from Tuesday, South Korean Prime Minister Chung Sye-kyun said.

Agencies