China is set to inject at least 400 billion yuan into Agricultural Bank of China (SHA:601288, HKG:1288), Bank of Communications (SHA:601328, HKG:3328), and Postal Savings Bank (SHA:601658, HKG:1658), as part of a broader plan to boost capital buffers at major state lenders, Bloomberg News reported Wednesday.
The Ministry of Finance has previously said it will fund the injections through special sovereign bonds, aiming to strengthen financial stability and spur lending. In total, up to 1 trillion yuan could be allocated to China's largest banks, according to the report.
The move, which is expected to be completed by June, marks Beijing's first major capital infusion since 2008, Bloomberg wrote.
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