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Huijin applies for $50b govt injection - report

Updated: 2010-03-24 16:06
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SHANGHAI - China Central Huijin Investment Ltd, the domestic arm of China's sovereign wealth fund, has applied for a $50 billion cash injection from the Chinese government, the National Business Daily said on Wednesday.

China Investment Corp (CIC), parent of Huijin, has submitted an application for cash aid to the State Council, the country's cabinet, the paper said, citing an unnamed CIC source.

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"The $50 billion Huijin requested may come from the foreign exchange reserves or other financial resources," the source was quoted as saying.

Huijin, the parent of Industrial and Commercial Bank of China, Bank of China and China Construction Bank, recently bought additional shares in the three lenders, and will continue to do so over the next 12 months, the lenders said in October.

Aid from the government would help maintain Huijin's controlling stake in the lenders, which might proceed with their own fund-raising plans, the paper said.

Earlier in the month, Bank of China gained shareholders' approval to issue up to 20 percent of its existing shares and as much as 40 billion yuan ($5.86 billion) worth of six-year convertible bonds in Shanghai.