China's plan to inject capital into major state-owned insurers is expected to ease capital constraints and solvency pressures, potentially giving the country's biggest insurance groups more room to increase long-term equity investments, analysts said, Reuters reported.
Five state-owned insurers and three banks announced on Sunday plans to raise up to a combined 360 billion yuan ($53.6 billion) through capital injections from the Ministry of Finance and other shareholders. The finance ministry will issue 300 billion yuan in special bonds to fund the recapitalisation, state-run Xinhua News Agency reported, Reuters said.
