CDB and EXIM Bank to Receive Capital Injections from Forex Reserves

(Beijing) – China's central bank is set to recapitalize two of its three policy banks with money from the country's foreign exchange reserves which have expanded to US$ 3.8 trillion, sources with knowledge of the matter told Caixin.

The bank is to inject US$ 32 billion and US$ 30 billion, respectively, into China Development Bank (CDB) and Export-Import Bank of China (EXIM), through an arrangement vaguely described as "converting entrusted loans into equities," the sources said. Details of the plan are not clear.