China will send $55 billion to support the largest banks

The Chinese authorities plan to allocate over $55 billion to support a number of the country's largest financial institutions, including Agricultural Bank of China (Agbank), Bank of Communications (BoCom) and Postal Savings Bank of China (PSBC). These measures are related to the implementation of the economic stimulus package first introduced last year.

As it became known from sources familiar with the situation, the Chinese government intends to start recapitalizing three large banks in the coming months. This initiative is part of a large-scale plan to stabilize and strengthen the economy, which is experiencing serious difficulties.

It is expected that the authorities will allocate over 400 billion yuan (about $55 billion) for a new share issue for Agbank, BoCom and PSBC. The program is expected to be completed by the end of June, but the details, including the exact amounts for each bank, are still being clarified and may be reviewed in the process.