As China sees a surge in new coronavirus cases and the death toll passes 360, Allianz China Insurance and Allianz SE is setting up an emergency response fund to support the country’s fight against the epidemic.
As China sees a surge in new coronavirus cases and the death toll passes 360, Allianz China Insurance and Allianz SE is setting up an emergency response fund to support the country’s fight against the epidemic.
The initial commitment towards this fund is RMB4 million, around EUR520,000, coming in part from Allianz SE’s Disaster Recovery Fund and in part from Allianz’s operating entities in mainland China and the wider region.
“Allianz is closely following the development of the epidemic. We hope to provide relief to the areas that are most hit by the epidemic at present. We will continue to provide support where necessary, according to developments and rescue needs,” said Solmaz Altin, chief executive officer, Allianz (China) Insurance Holding.
Following an extended Lunar New Year holiday break, stocks returned to trade on Monday, and indexes plunged 9 per cent in early trading. Chinese stock and commodity markets saw losses of USD420 billion off China’s stock market in their first session after the extended Chinese New Year break amid the outbreak.
“Just as investors returned from celebrating the Chinese New Year, the Chinese market tumbled as Hong Kong closed its borders to contain the Coronavirus. While significant, much of the fall was linked to Chinese markets catching up with global market sell off following the outbreak of the virus,” said Adrian Lowcock, head of personal investing at Willis Owen.
According to Lowcock, the virus will have an impact on the Chinese economy, but “the Chinese government is not going to sit idly by and have already begun pumping money into the financial system.”
He added: “It is hard for investors to sit and watch markets tumble as the virus continues to spread, but selling up and moving into cash is not without its risks. Whilst in the short term selling could protect from further potential losses, this could be easily offset if the money is not reinvested at the right time. Instead many wait for markets to recover before returning, which could prove detrimental.”
At this stage, the emergency fund’s main goal is to support those working on the front line in the areas most hit by the epidemic in China’s Hubei Province, according to Allianz. The aid will consist of medical supplies, donations and insurance protection.
Hubei, our newly established branch in 2019 is at the centre of the epidemic and we have to respond quickly to address the concerns, safety and wellness of our employees and business partners there,” commented Chen Liang, chief executive officer, Allianz China Life Insurance. “Allianz China Life together with our partner “Micro Medicine”, launched the free “Anti-Epidemic Clinic” platform in “Enjoy Health”, gathering thousands of doctors and medical professionals from public hospitals across the country to provide online free clinic services to everyone in China,” Liang continued.
The emergency response fund will be managed directly by Allianz (China) Insurance Holding, which is based in Shanghai, in collaboration with the other Allianz operating entities in China and the region.
The corporate & specialty arm of the Allianz Group, AGCS is monitoring the impact of the coronavirus on its corporate clients. Mark Mitchell, regional CEO Asia Pacific, AGCS said, “Factories around the world have been disrupted as the coronavirus curtails China’s industrial output. We are working closely with our clients in China and globally to mitigate the potential business interruption within their supply chains to keep their businesses running smoothly.”
