Bankinter | The authorities are considering injecting capital into large state-owned banks to the tune of up to $142.39 billion (1 trillion yuan). This operation would be financed through the issuance of special sovereign bonds and would be the first time they inject capital into state-owned banks since 2008.
Opinion of Bankinter’s analysis team: It is included in the battery of measures presented this week by the government and the PBoC to stimulate the Chinese economy in the face of weak consumption and the real estate sector. The aim is to achieve growth of around 5% by 2024.
At the same time, after the monthly meeting of the Politburo (the highest governing body made up of 24 people), Xi Jinping and other members reinforced the message of support for the Chinese economy with sharp rate cuts, higher public spending and stabilisation of the real estate market.
