China injects €46.1 billion into banks and insurers as growth slows
The Chinese finance ministry has approved a massive funding package to state banks and insurance companies, totaling over €46 billion, aimed at stabilizing credit capacity during an economic slowdown.
Beijing announced a capital injection of 360 billion yuan (€46.1bn) into state-owned financial institutions on Sunday. The finance ministry stated this measure would strengthen the 'sound operating capabilities' and lending ability of major banks to support the real economy. Roughly 290 billion yuan (€37.2bn) was directed toward commercial banks, with roughly €4.5 billion allocated to China Life Insurance Group and €900 million to China Taiping Insurance Group among others. Specific deals included a €20.5bn private placement for the Agricultural Bank of China and a €12.8bn offering for the Industrial and Commercial Bank of China. The state tobacco monopoly and Export-Import Bank of China also received substantial portions of the capital. This funding package represents one of the largest interventions in China's financial system this year as economic growth decelerates.
