The News
Four of China’s largest state-owned banks announced on Sunday a plan to raise a combined $72 billion, as Beijing ramps up its efforts to resuscitate the economy.
The fundraising, which will be done through share sales to investors, represents a rare government-directed injection of capital; the finance ministry will be a major investor in the push.
The capital increase is aimed at bolstering lending, which in turn could prop up the country’s ailing property sector.
Chinese state lenders have seen mounting challenges, including shrinking interest margins and stagnant consumer loans in 2024, Nikkei reported.
Building up banks’ capital buffers, analysts say, could also help them manage the risks facing China’s economy amid the escalating trade conflict with the US.