China's finance ministry will inject 57 billion yuan (HK$66.6 billion) into three state-owned insurers, the companies said on Sunday, in a coordinated push by Beijing to shore up capital across its financial system.
China Life Insurance (Group) Co, the country's largest life insurer, will receive 35 billion yuan, while China Taiping Insurance Group will get 7 billion yuan, the two groups said in statements.
People's Insurance Company (Group) of China said it planned to raise up to 15 billion yuan through a private placement of A-shares to the Ministry of Finance, with the proceeds to be 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 in its statement, adding that it would strengthen the group's ability to withstand risks.
Taiping said the funds would bolster its solvency and other key indicators.
Separately, Agricultural Bank of China and Industrial and Commercial Bank of China said they planned to raise up to 160 billion yuan and 100 billion yuan respectively through private A-share placements to the finance ministry, China National Tobacco Corp and its subsidiaries.
Both lenders said the proceeds would be used entirely to replenish core tier 1 capital, in a move to help sustain credit expansion as Beijing leans on state banks to support growth.
Reuters
