China to pump $54bn into insurers and state banks to boost economy

The package includes 290 billion yuan for three state-owned banks and around 70 billion yuan for five insurers.

Major lenders including the Industrial and Commercial Bank of China (ICBC) and Agricultural Bank of China will receive fresh capital to strengthen their core finances and support lending.

Among the insurers, China Life Insurance will receive 35 billion yuan, while China Taiping Insurance Group will get 7 billion yuan. Other companies, including China Export & Credit Insurance Corporation and China Reinsurance, will also receive capital injections.

The move comes as China faces several economic challenges, including weak domestic demand, a prolonged property market slowdown, trade and technology tensions with the US, and an ageing population.

China’s economy grew 4.3% in the second quarter, down from 5% in the first quarter. Beijing has set a full-year growth target of 4.5%–5%, its lowest target since 1991.

The government hopes the new capital will improve the financial institutions’ ability to manage risks, expand lending and support economic growth. It also aims to strengthen the financial sector against external shocks as global economic uncertainty continues.