Geely develops virus-proof car

Zhejiang Geely, the parent of Geely Automobile (0175), said it has been developing a car that is virus-proof as Fast Retailing (9983) revealed it has temporarily closed about 280 stores in China amid the Wuhan virus outbreak.

Zhejiang Geely announced yesterday it will spend 370 million yuan (HK$410.72 million) to develop a new vehicle that can keep out harmful substances in the air and purify the air in the car.

Meanwhile, Fast Retailing (9983) temporarily closed about 280 of its 750 Uniqlo stores in mainland China.

Companies including Apple, Alphabet's Google, and Deere have also temporarily closed facilities in China.

Foxconn could see a "big" production impact, and shipments to customers including Apple face disruption if a Chinese factory halt due to the coronavirus outbreak extends into a second week, a person with direct knowledge of the matter said.

Taiwan's Foxconn, which makes smartphones for Apple and other brands, has halted "almost all" of its production in China after companies were told to shut until at least February 10, the source said, adding that an extension of the stoppage could disrupt shipments to clients including Apple.

The source said that Foxconn has so far seen a "fairly small impact" from the outbreak as it was utilizing factories in countries including Vietnam, India and Mexico to fill the gap, adding that the company will be able to make up for the delay if factories work overtime after the ban.

Separately, Moody's expects contracted sales and cash flow of mainland developers to drop in the first quarter, as sales offices closed and buyers cannot easily go out, though most of them have no major investment in Hubei Province. The rating agency expects a slight drop in home sales in mainland China in 2020 as the sales and construction activities are usually weak in the first quarter, given the first-quarter sales revenue only accounted for 17 percent of full-year revenue last year.