China is planning to inject 7.3 billion dollars into a bank and an insurer in a bid to beef up the ability of the state-owned firms to aid exports and foreign investments, state media said Thursday.
The Export-Import Bank of China and China Export and Credit Insurance Corporation are expected to get the cash infusion through a 50-billion-yuan bond issued by Central Huijin Investment, the China Business News reported.
Central Huijin is the domestic investment arm of the nation’s sovereign wealth fund China Investment Corp (CIC).
The timeframe for the cash injection is yet to be decided and a special meeting to discuss the issue will be called at CIC next week, the report said, citing unnamed sources close to Central Huijin.
China aims to reform its low-yielding policy financial institutions, which are tasked with implementing various national targets, to make them more competitive and profitable.
The Export-Import Bank of China was set up in 1994 as a key financing channel for the import and export of high-tech products and overseas projects of Chinese companies.
The bank made 2.5 billion yuan in after-tax profits in 2009 and total assets stood at 953.3 billion yuan, according to a statement on its website.
China Export and Credit Insurance Corporation was established in 2001 to promote the country’s exporters and foreign investment.
