China to Inject $54bn into Financial Sector to Support Banks, Insurers

China will pour $54bn (£40bn) into its financial sector, targeting banks and insurers that are expected to receive billions of yuan in capital from state bodies such as the Ministry of Finance and the state‑owned tobacco monopoly. The move is designed to replenish cash reserves and encourage these institutions to increase investment in the stock market, a strategy aimed at countering the country’s sluggish economic growth. The stimulus package signals Beijing’s intent to shore up the financial system and stimulate domestic market activity.