China is putting 360 billion yuan, or about $53.6 billion, into eight state-owned banks and insurance companies, in a move aimed at strengthening the country's financial system as growth slows.
The injection is led by China's finance ministry and was announced by state news agency Xinhua. It follows a series of steps by Beijing to support lenders and insurers that carry heavy exposure to the property market and to local government debt.
More room to absorb losses
State news outlet the Global Times said the capital will "give banks and financial institutions more resources to channel into credit for the real economy, while strengthening their ability to withstand external shocks at a time of global financial uncertainty."
The money gives the eight institutions more room to absorb losses and to keep lending to businesses and households. Economists have warned that Chinese banks face narrowing margins and rising bad loans, which limits how much credit they can extend without new capital.
Beijing's wider push
President Xi Jinping has long treated financial stability as a central part of national security. The government has also been trying to reshape the economy away from property investment and toward manufacturing, technology and domestic consumption.
The eight institutions include the country's largest lenders, which together hold a big share of the banking system's assets and act as the main channel for state-directed lending.
Bank shares have traded below book value for years, which makes it harder for lenders to raise money from private investors and leaves the state as the main source of fresh capital.
The scale of the injection shows how much weight Beijing places on keeping its largest financial institutions stable. Analysts say the funds may ease short-term pressure on balance sheets, though they are unlikely on their own to change the pace of lending or revive weak demand. Investors will watch whether the capital is followed by lower reserve requirements or other measures to push credit into the economy.