The Chinese government has announced a capital injection of 300 billion yuan (45 billion US dollars) into eight major banks and insurance companies, marking the largest increase in capital reserves in nearly 20 years. This move aims to strengthen the financial system and support lending amid a slowing economy. The Ministry of Finance will issue special bonds to boost the capital of financial institutions such as Industrial and Commercial Bank of China, Agricultural Bank of China, and People's Insurance Company (Group) of China. This action is part of a plan announced by the government in 2024 and adds to the 500 billion yuan already injected since the beginning of 2025. Premier Li Qiang has urged officials to accelerate economic recovery, and this measure will aid the financial sector, which is facing historically low net interest margins.
Agricultural Bank of China Ltd Class AGovernment injects 300 billion yuan capital into eight major banks including Agricultural Bank of China, boosting its capital reserves.
People's Insurance of China LtdPeople's Insurance Company (Group) of China is among the eight financial institutions receiving the 300 billion yuan capital injection.
