China is investing tens of billions of dollars in eight state-owned banks and insurance companies to strengthen the country’s financial system and stimulate its faltering economy. The financial injection, headed by China’s finance ministry, will amount 360 billion yuan ($53.6 billion; £39.7 billion), state news agency Xinhua said on Sunday.
The publication stated the move “will help further enhance their sound operating capabilities, risk resistance capabilities, and ability to serve the real economy” . It is the latest move in Beijing’s efforts to revitalise the world’s second largest economy as it grapples with concerns such as trade disputes with the West, the impact of the Iran conflict, and an ageing population.
The package will improve the finances of three major lenders and five insurers, including the Industrial and Commercial Bank of China, the Agricultural Bank of China, and the China Export & Credit Insurance Corporation.
Global Times reported that this “will give banks and financial institutions more resources to channel into credit for the real economy, while strengthening their ability to withstand external shocks at a time of global financial uncertainty. President Xi Jinping has always viewed financial stability as critical to China’s national security.
This weekend’s pronouncements come as Beijing seeks to reorganise the economy in the face of a variety of problems, including a dwindling workforce, a years-long housing market slump, and persistent trade and technological competition with the United States.
Also Read:
US Borrowing Prices Increase as Attempts to Lower Rates Don’t Last
The Premier of Manitoba Argues That as the US Trade Deadline Approaches, Canada “Should Fight
