China injects $53 BN into biggest banks

China is pumping RMB 360 billion ($53 billion) into its biggest banks and insurers, reports the Financial Times. The move seeks to prop up the financial sector’s declining margins and create buffers to boost economic growth.

Eight institutions including state-run commercial banks ICBC and Agricultural Bank and insurers China Life and China Reinsurance announced they would receive a total of RMB 300 billion from the Ministry of Finance and Rmb60bn from state tobacco companies. 

Weak consumer spending and a five-year property slowdown are pressuring bank margins, while low interest rates are affecting insurers’ long-term investment prospects.