Central Huijin set to recapitalise Export-Import Bank

Sources said the Chinese bank would possibly issue $11.7 billion to inject capital into Exim Bank.

China Central Huijin Investment Ltd., the domestic arm of China's sovereign wealth fund, will inject capital into Export-Import Bank of China by as soon as January, the official China Daily reported on Thursday.

The newspaper also cited a CIC source as saying he was unaware of plans by Huijin to issue bonds to fund capital injections for Exim Bank and China Export or for Credit Insurance Corp (Sinosure), according to a report in Reuters.

On Wednesday, Bloomberg News reported that Central Huijin may issue up to 80 billion yuan ($11.7 billion) in bonds and use the proceeds for capital injections into Exim Bank and Sinosure, citing unnamed sources.

"It would be very unusual for Huijin to issue bonds to recapitalise banks, as the common practice has been for Huijin to inject money from the nation's foreign exchange reserves directly into the banks," the English-language China Daily quoted its source as saying.

Asked by reporters whether Huijin planned to issue bonds, Jin Liqun, chairman of CIC's supervisory board, declined to comment.

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