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China shores up smaller banks with fresh $47bn injection

Funds from infrastructure bonds tapped to shield lenders from economic slowdown

The Chinese government is making a second round of capital infusions for smaller banks affected by the pandemic.   © Reuters

BEIJING -- The Chinese government is injecting 320 billion yuan ($47 billion) in public funds into small and midsized banks in a bid to help regional lenders reeling from the economic slowdown.

The capital injections are financed by funds raised with infrastructure bonds. The China Banking and Insurance Regulatory Commission, along with the Ministry of Finance, plan to grant 320 billion yuan in bond issue allotments to specific regions through the end of August.

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