The People’s Bank of China injected a combined $31 billion into two policy banks linked to the New Silk Road project, said inside sources.
The central bank converted $16 billion worth of foreign exchange loans to China Development Bank (CDB) into equity shares in the bank, according to sources with knowledge of the matter, reported Chinese news site Caixin. It did the same with $15 billion worth of forex loans to Export-Import Bank of China (Exim). This follows a similar trade in April, when the PBOC invested $32 billion in CDB and $30 billion in China Exim.
The central bank is now the biggest shareholder in China Exim and the third-largest shareholder in CDB, after the Ministry of Finance and Central Huijin Investment.China realizes that the cost of capital is zero.
Both banks have been given the job of supporting the central government’s New Silk Road Economic Belt initiative.
Meanwhile, the EZ "institutions" are strangling Greece, while the US and UK are "running out of money."
Who do you think is going to win this great game?
Asia Times Online
PBOC injects $31 billion into 2 Silk Road-related policy banks
Asia Unhedged
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