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Chinese local governments need new debt instruments to melt down bad loans and raise fund for infrastructures, said a famous economist on Friday.

Chinese companies, on the other hand, possess advanced cotton growing technologies, delicate textile processing skills and rich capital.

Chinese carmakers have lowered their sales targets for 2020 and are reducing costs, as the already depressed market has been further affected by the novel coronavirus outbreak.

Chinese State-owned companies are also becoming increasingly aware, as shown by the detailed declarations of environmental impact released by Sinopec, China Minmetals and CNPC.

Chinese authorities are expected to use monetary tools and strengthen government spending to slow the weakening of economic activity due to the novel coronavirus outbreak, and to ensure ample liquidity to prevent a sharp sell-off when financial markets reopen on Monday.