China is to inject $54bn (£40bn) into its financial sector as Beijing looks to shore up insurers and banks in the face of faltering economic growth.
The country is looking to bolster the ability of its financial sector to invest in the stock market and lend to businesses.
China’s largest life insurer, China Life Insurance, will receive 35bn yuan, while the China Taiping Insurance Group said it would receive 7bn yuan.
The People’s Insurance Company of China said it planned to raise up to 15bn yuan through a private placement of A-shares, to the ministry of finance, with the proceeds used to replenish its capital.
“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,” China Life said, adding that it would strengthen the group’s ability to withstand risk.
