China's Banking Giants Seek $71 Billion Boost

China's major state-owned banks are gearing up to secure a significant capital infusion of 520 billion yuan ($71.60 billion) through A-share private placements. This financial maneuver, involving the finance ministry, aims to bolster the banks' reserves, ensuring economic stability in dynamic market conditions.

The four largest state-owned banks in China have announced plans to collectively raise 520 billion yuan ($71.60 billion) through A-share private placements, according to stock exchange filings released on Sunday. This strategic financial move involves the Chinese finance ministry across all four deals.

Leading the effort, the Bank of China targets raising up to 165 billion yuan. China Construction Bank is not far behind with an aim to secure 105 billion yuan. Meanwhile, Bank of Communications seeks as much as 120 billion yuan, and the Postal Savings Bank of China plans to gather 130 billion yuan.

The funds are anticipated to bolster the financial reserves of these banking giants, ensuring they remain robust in a fluctuating market environment. The strategic involvement of the finance ministry underscores the importance of this capital injection in maintaining economic stability.

(With inputs from agencies.)