China's central bank approves Central Huijin to fund ExIm Bank and Sinosure by selling bonds.
Central Huijin Investment Co, the domestic arm of China Investment Corp, will inject 88 billion yuan (US$12.96 billion) in the Export-Import Bank of China and China Export and Credit Insurance Corp (Sinosure), the Shanghai Securities News reported, citing an official.
Central Huijin will gain this boost in capital by selling bonds. The company has gotten approval from the People's Bank of China, the central bank for a bond sale of 187.5 billion yuan ($27.57 billion) in total and will sell up to 54 billion yuan ($7.94 billion) of bonds in China's inter-bank bond market Tuesday.
Huijin may use the rest of the funds to invest in rights offering plans of China's three largest banks, including Industrial and Commercial bank of China, China Construction Bank and Bank of China.
View the full report in Trading Markets.
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