Finance ministry to invest in major Chinese insurance groups

China's Ministry of Finance will inject 35 billion yuan ($5.21 billion) into China Life Insurance (Group) Company to help with operations and risk resistance capacity, the company announced on Sunday.

Also on Sunday, China Taiping Insurance Group said the Ministry of Finance will make a capital injection of 7 billion yuan to aid risk resilience, stabilize key indicators including solvency ratios, consolidate the foundation for long-term sustainable growth, and better equip the insurer to serve national strategies and high-quality development of the real economy.

The PICC company also unveiled a plan for private placement of A-shares. The insurer proposes issuing A-shares to the Ministry of Finance, to raise no more than 15 billion yuan. Proceeds, after the deduction of issuance costs, will be used to replenish the company's capital base.