According to the company’s statement on Sunday, China’s finance ministry will co-lead a combined $54 billion capital injection into state-owned insurers and banks-a move aimed at stabilizing its financial system.
According to the reports, China’s Life Insurance will receive 35 billion yuan while Taiping Insurance Group will reportedly receive 7 billion yuan.
The initiative could help bolster state insurers that were directed to support the stock market with medium and long-term funds while positioning them to assist regulators in managing high-risk tasks.
China Export and Credit Insurance Corp also said the finance ministry will inject 10 billion yuan to boost its core capital.
China Export and Credit Insurance Corp statement reads: “The injection is an important step by the country to enhance the financial sector’s ability to serve the real economy and promote the high-quality development of the financial and insurance industries.”
Agricultural Bank of China and Industrial and Commercial Bank of China said that two of the country’s largest state banks are scheduled to boost up to 160 billion yuan and 100 billion yuan.
Weak loan demand remains a persistent burden on the world’s second-largest economy which has also seen the declining profitability of its banking industry.
