November 12, 2009 / 5:04 AM / in 8 years

China Huijin to recapitalise Exim Bank soon -media

BEIJING, Nov 12 (Reuters) - China Central Huijin Investment Ltd., the domestic arm of China’s sovereign wealth fund, will inject capital into Export-Import Bank of China by as soon as January, the official China Daily reported on Thursday.

A restructuring plan had been submitted to the country’s cabinet, although the size of the injection was still unclear, the state newspaper cited an unnamed source at sovereign fund China Investmnent Corp. as saying.

The newspaper also cited a CIC source as saying he was unaware of plans by Huijin to issue bonds to fund capital injections for Exim Bank and China Export or for Credit Insurance Corp (Sinosure).

On Wednesday, Bloomberg News reported that Central Hujin may issue up to 80 billion yuan ($11.7 billion) in bonds and use the proceeds for capital injections into Exim Bank and Sinosure, citing unnamed sources.

“It would be very unusual for Huijin to issue bonds to recapitalise banks, as the common practice has been for Huijin to inject money from the nation’s foreign exchange reserves directly into the banks,” the English-language China Daily quoted its source as saying.

Asked by reporters late on Wednesday whether Huijin planned to issue bonds, Jin Liqun, chairman of CIC’s supervisory board, declined to comment.

    Exim Bank, one of China’s three policy lenders, would be following broadly in the footsteps of China Development Bank, which at the end of 2007 received a capital injection of $20 billion from Central Huijin.

    However, company officials have said Exim Bank will not reform along commercial lines, but instead keep its policy orientation, aiding projects that the government deems important.

    Central Huijin, parent of Industrial and Commercial Bank of China (ICBC) (601398.SS) (1398.HK), Bank of China (601988.SS) (3988.HK) and China Construction Bank (CCB) (601939.SS) (0939.HK), recently bought additional shares in the three lenders and would continue to do so over the next 12 months, the lenders said in mid-October. (Reporting by Aileen Wang and Jason Subler; Editing by Chris Lewis)

    0 : 0
    • narrow-browser-and-phone
    • medium-browser-and-portrait-tablet
    • landscape-tablet
    • medium-wide-browser
    • wide-browser-and-larger
    • medium-browser-and-landscape-tablet
    • medium-wide-browser-and-larger
    • above-phone
    • portrait-tablet-and-above
    • above-portrait-tablet
    • landscape-tablet-and-above
    • landscape-tablet-and-medium-wide-browser
    • portrait-tablet-and-below
    • landscape-tablet-and-below