CHINA INJECTS $53.6BN INTO STATE BANKS AND INSURERS

China's finance ministry is injecting 360 billion yuan ($53.6bn; £39.7bn) into eight state-owned banks and insurance companies, according to state news agency Xinhua. The capital injection targets three major lenders and five insurers, including the Industrial and Commercial Bank of China, the Agricultural Bank of China and China Export & Credit Insurance Corporation. The move aims to strengthen the financial institutions' operating capabilities and capacity to support the broader economy, Xinhua reported on Sunday.

The injection represents Beijing's latest attempt to address slowing economic growth amid multiple headwinds. China's economy expanded by 4.3% in the second quarter of 2024, below the government's annual target and lower than the 5% growth recorded in the first quarter, according to official GDP figures released in July. The slowdown reflects weak domestic demand and external pressures including trade tensions with the West and geopolitical factors affecting global commodity prices. In March, Beijing lowered its annual economic growth target to a range of 4.5%-5%, its lowest expansion goal since 1991.

State news outlet the Global Times characterised the capital injection as enabling financial institutions to channel more resources into credit for the real economy whilst strengthening their resilience against external shocks. President Xi Jinping has historically emphasised financial stability as central to China's national security. The package addresses structural challenges including a shrinking workforce and ongoing trade and technology competition with the United States.