China's finance ministry leads a $54 billion capital injection into state-owned banks and insurers to bolster the financial system
China's finance ministry is leading a $54 billion capital injection into eight state-owned financial institutions, including three major banks and five insurers. The 360 billion yuan package aims to shore up the country's financial system and enhance the ability of these institutions to serve the real economy while facing faltering economic growth. This move marks the first time Beijing has extended recapitalization to insurers. The Agricultural Bank of China and the Industrial and Commercial Bank of China plan to raise up to 160 billion yuan and 100 billion yuan, respectively, through private A-share placements to the finance ministry and China National Tobacco Corp. The Export-Import Bank of China will receive a direct 30 billion yuan injection from the finance ministry. In the insurance sector, China Life Insurance will receive 35 billion yuan, while China Taiping Insurance Group will receive 7 billion yuan. The People's Insurance Company of China plans to raise up to 15 billion yuan through a private placement of A-shares to the ministry of finance. These injections are intended to help the financial sector withstand external shocks and manage risk while supporting the stock market and lending to businesses.
Sources
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China says it will pump $54 billion into banks and insurers — but their stocks still fell
CNBC
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China to pump $54bn into state banks and insurers to boost economy
BBC