Stephen Roach: Impossible to curb risks by closing the market

The opening of China's A-share market on Monday as committed is a very correct decision, said American economist Stephen Roach.

It is impossible to curb the potential market risks and nerves by closing the market, stressed Roach, senior fellow at Yale University's Jackson Institute for Global Affairs and senior lecturer at Yale School of Management, in an interview with Shanghai-based financial news media Yicai.

China's stock market saw an anticipated drop on Monday, following the Lunar New Year holiday and a steep global slowdown amid the ongoing coronavirus outbreak.

The impact of the novel coronavirus may continue for a period of time, but China will eventually overcome the disease, said Roach, adding that China's market performance was just a reaction to other markets.

By opening the market as usual, Chinese regulators have shown confidence, said Roach. The People's Bank of China also has provided protection for market liquidity, showing that financial regulators have sufficient tools to support the market.