BEIJING: China is preparing to inject or raise around 316 billion yuan ($47 billion) for major state-owned banks and insurance companies as Beijing moves to strengthen its financial system and expand institutions’ capacity to support economic growth.
The Agricultural Bank of China plans to raise up to 160bn yuan ($24bn), while the Industrial and Commercial Bank of China intends to raise another 100bn yuan ($15bn) through private share placements.
Another 57bn yuan, or about $8bn, is being directed towards three major state-controlled insurers, including China Life Insurance Group, China Taiping Insurance Group and the People’s Insurance Company of China.
The measures are designed to bolster banks’ core capital and improve insurers’ solvency and resilience, while giving financial institutions greater capacity to lend to businesses and support the wider economy.
Beijing has increasingly looked to its large state-owned financial institutions to sustain credit and investment as policymakers seek to reinforce economic growth and financial stability.