Report comes via Japanese media (Nikkie).
- Chinese government is injecting 320 billion yuan ($47 billion) in public funds into small and midsized banks
- financed by infrastructure bonds funds
- 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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Smaller banks have been reeling in the wake of businesses collapsing in the wake of COVID and associated restrictions shuttering the economy on a rolling basis. Nonperforming loans have skyrocketed. Mix in the debt-fulled implosion of the property sector also.
Property collapse in China has been literal at times in China:
