BEIJING: Central Huijin Investment Co, the domestic arm of China's $300 billion sovereign fund, will give its full backing to its banking units if they need to cut dividends or raise money to meet tougher capital rules, a senior Central Huijin executive said on Sunday.
Central Huijin acts on behalf of the State Council, or the Cabinet, as the controlling shareholder of state lenders such as Industrial & Commercial Bank of China, Bank of China and Agricultural Bank of China.
"Under the current situation, we should not overly emphasize on dividend payout ratios," Li Jiange, Vice Chairman of Central Huijin, told reporters on the sidelines of the annual Chinese Communist Party's consultative meeting.
If the banks need to raise fresh capital, Central Huijin is ready to enter the debt market again to raise funds to support their funding needs, Li said.
Central Huijin announced in August a debt programme worth 188 billion yuan ($28.63 billion) to support its bank units' massive fundraising.
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