China is injecting 360 billion yuan ($53.6bn; £39.7bn) into eight state-owned banks and insurance companies in an effort to strengthen the country’s financial system and support its slowing economy, state news agency Xinhua reports.
The cash injection is being led by China’s finance ministry. Xinhua said the measure would improve the institutions’ operating strength, ability to withstand risks and capacity to support the wider economy.
The package covers three major lenders and five insurers. Recipients include the Industrial and Commercial Bank of China, the Agricultural Bank of China and China Export & Credit Insurance Corporation.
The move is the latest in Beijing’s efforts to reshape and support the world’s second-largest economy. China is facing weak domestic demand, a prolonged property-market slump, an aging population and ongoing trade and technology tensions with the United States.
China’s economy grew by 4.3% in the second quarter, according to official figures released in July, after expanding by 5% in the first quarter. Beijing set an annual growth target of between 4.5% and 5% in March.
The Global Times said the funding would give banks and other financial institutions more resources to direct towards lending to the wider economy and strengthen their ability to withstand external shocks.
President Xi Jinping has identified financial stability as a key part of China’s national security, according to the supplied report.
