A witness to the incident said the school-aged children were left shaking and crying while the two men walked away laughing.
Police enquiries are continuing into the incident on Monday afternoon outside Merrin School on Merrin St in Avonhead.
A police spokeswoman said the report stated two people were yelling abuse at a group of children.
A post shared on a local Avonhead community Facebook page and written by a witness stated the incident happened outside a primary school.
"Two skinheads started yelling coronavirus to all the Asian families and their children," the post said.
"Many of the children were visibly shaken and crying as the two low-lifes walked off chuckling away."
The witness described the men as caucasian and 1.80m tall. They said they were shirtless with tattoos and another was wearing a white singlet with a 'rats tail' hairstyle.
After being alerted to the incident, race relations commissioner Meng Foon is asking people to "be kind".
"It's a sad situation that a few New Zealanders have used coronavirus as an excuse to bring out their discrimination and racism," he said.
"It’s not a Chinese disease it’s a disease that can affect anyone.
"People that dish it out don’t realise the consequence of the suffering from people.
"People that receive abuse feel insecure and unsafe and it causes trauma.
"To the people who do it - stop it.
"Stop being unkind," he said.
It is the second known incident of racial discrimination in relation to coronavirus in Christchurch.
Earlier this month, a racist email was sent to parents in the Rolleston area, which called Asians “virus spreaders” and their children should stay home from school.
The email was widely circulated in the local Chinese community and made national headlines, causing outrage.
It said: "Our Kiwi kids don't want to be in the same class with your disgusting virus spreaders."
