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China injects massive funds into policy lenders: Caixin
[BEIJING] China's central bank and finance ministry will inject billions of dollars into the country's policy banks, Caixin reported on Tuesday without specifying the source of its information.
The People's Bank of China will inject US$45 billion into the Export-Import Bank of China (EXIM) and the finance ministry will inject 100 billion yuan into the Agricultural Development Bank of China (ADBC), Caxin, a respected domestic financial magazine, reported.
Both policy lenders did not respond to calls from Reuters for comment.
Beijing is stepping up reforms at its policy lenders to drive economic growth and boost Chinese companies' global competitiveness.
Reuters reported last week that China Development Bank Corp (CDB), the country's biggest policy lender, will receive a capital injection of US$48 billion from the central bank.
After this round of capital injection totalling US$109 billion, the central bank will replace the finance ministry as the biggest shareholder in CDB and EXIM, Caixin said.
In April, the State Council approved reform schemes for the country's three major policy banks - CDB, EXIM and ADBC, requiring them to supplement capital, strengthen internal and external control, and build up sustainability at a time when the world's second-largest economy is set to grow at its slowest pace in a quarter-century.
CDB is responsible for funding China's large infrastructure investments at home and overseas. EXIM provides support for China's "going out" strategy, facilitating trade and Chinese companies' expansion abroad. ADBC is China's major lender for agricultural business.
In addition to strengthening its own policy lenders, China also launched the US$100 billion New Development Bank, known as "BRICS" Bank, in Shanghai with key emerging nations - Brazil, Russia, India and South Africa to fund infrastructure and development projects in these nations.
Another high-profile Beijing-backed multilateral policy bank, Asian Investment Infrastructure Bank, was launched in June, marking China's global ambitions while creating a new channel to fund its "One Belt, One Road" infrastructure investment initiative.