How will a major capital injection into financial institutions serve China's real economy?

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  daily news and analysis we keep you informed and inspired this is world today china announces

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  a major capital injection into financial institutions u.s envoys hope for a new round of russia

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  ukraine peace talks after meeting with the two leaders and european commission president ursula

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  von der leyen visits greenland to sign a new partnership deal Hello and welcome to World Today.

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  I'm Do Hongyu in Beijing.

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  To listen to this episode again or to catch up on previous episodes,

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  you can download our podcast by searching World Today.

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  Our first story, China's Ministry of Finance says it'll issue 300 billion yuan or about 44.2 billion

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  US dollars in special treasury bonds to replenish the core tier one capital of eight central financial institutions.

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  It'll cover the Industrial and Commercial Bank of China, Agricultural Bank of China,

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  and major insurers such as PICC and China Life.

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  The ministry says the capital injection will proceed on market-oriented and law-based principles.

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  Officials say all eight institutions remain

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  financially sound with stable asset quality and key indicators within safe ranges.

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  The move is expected to strengthen the firm's risk resilience and service capacity for the real economy.

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  For more, we are joined by Professor Liu Baochang,

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  Director of the Center for International Business Ethics and the University of International Business and Economics.

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  Thank you very much for joining us, Professor Liu.

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  To help us understand the move, could you explain in simple

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  terms to us what core Tier 1 capital is and why it matters so much for large financial institutions?

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