China injects 53.6 billion dollars into eight banks and insurance companies to support the economy

China will inject 360 billion yuan, equivalent to approximately $53.6 billion, into eight state-owned financial institutions under a plan coordinated by the Ministry of Finance to strengthen the financial system and support the slowing economy.

The package targets three major banks and five insurance companies, including Industrial and Commercial Bank of China, Agricultural Bank of China, and China Export & Credit Insurance Corporation. Beijing says the measure will increase the institutions’ resilience to risks and the resources available for lending to the real economy.

The decision comes as China faces a difficult context, marked by weak domestic demand, a decline in the property market, an aging population, and trade and technology tensions with the United States. GDP growth slowed to 4.3% in the second quarter, from 5% in the first quarter.

In March, the authorities lowered the annual growth target to 4.5%-5%, the lowest expansion target since 1991. Economists consider the recapitalization an important step but warn that additional fiscal measures are also needed to revive lending and consumption. The initiative expands the consolidation process launched in 2025, when support was focused primarily on banks.

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