💥 Fed cuts sparks mid cap boom! ProPicks AI scores with 4 stocks +23% each. Get October’s update first.Pick Stocks with AI

China weighs injecting $142 billion of capital into top banks, Bloomberg News reports

Published 09/25/2024, 11:03 PM
Updated 09/25/2024, 11:06 PM
© Reuters. FILE PHOTO: Woman holds Chinese Yuan banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic/Illustration/File photo
HK50
-
USD/CNY
-
CSI300
-

HONG KONG (Reuters) - China is considering injecting up to 1 trillion yuan ($142.39 billion) of capital into its biggest state banks to increase their capacity to support the struggling economy, Bloomberg News reported on Wednesday.

The move is part of broad stimulus measures Beijing introduced this week to boost China's ailing economy and sluggish markets.

The funding will mainly come from the issuance of new special sovereign bonds, Bloomberg reported, citing people with knowledge of the matter.

The National Financial Regulatory Administration (NFRA), the country's banking sector regulator, did not immediately respond to a Reuters request for comment.

Top lenders in the world's second-largest economy have been struggling with shrinking margins, faltering profits and rising bad loans amid slowing growth and an unprecedented property sector crisis.

Four of China's five largest lenders reported lower second-quarter profit after responding to a government nudge to lower lending rates in order to stimulate weak loan demand.

The massive capital injection, subjected to changes, would be the first time since the 2008 global financial crisis that the Chinese government has stepped in to replenish its big lenders, the Bloomberg report said.

© Reuters. FILE PHOTO: Woman holds Chinese Yuan banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic/Illustration/File photo

China's CSI300 blue-chip index reversed early losses to last trade 0.35% higher, while Hong Kong's Hang Seng Index gained 1.5%. The yuan extended its gains and was last up 0.12% at 7.0241 in the onshore market.

($1 = 7.0232 Chinese yuan renminbi)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.