China is preparing a massive stimulus package worth £40 billion to bolster its financial sector and help the country's slowing economy. The injection, led by China's finance ministry, will provide capital to several state-owned banks and insurance companies, including China Life Insurance, which will receive 35bn yuan. Other beneficiaries include The People's Insurance Company of China, which plans to raise up to 15bn yuan through a private placement of A-shares, and the China Taiping Insurance Group, which will receive 7bn yuan. The move is aimed at helping the financial sector invest in the stock market and lend to businesses, as well as positioning them to help regulators manage risks. This stimulus package comes amid signs that China's economy is struggling to escape weak growth, with its largest life insurer facing eroding profitability due to persistently low interest rates. The injection will be led by state institutions including the ministry of finance and even the company that runs China's tobacco monopoly.
the economic picture is darkened further by a real estate downturn that is straining local government finances and undercutting spending capacity