China’s Ministry of Finance will inject 360 billion yuan (approximately $54 billion) into three state-owned banks and five state insurers. Of this amount, 290 billion yuan will go to banks (ICBC, Agricultural Bank of China, and Export-Import Bank of China) and 70 billion to insurers (China Life, PICC, Sinosure, China Taiping, and China Reinsurance). With a leverage ratio of eight to one, this recapitalization could support up to 2,300 billion yuan in new credit. The effect on Bitcoin remains indirect: no funds are destined for the cryptocurrency market, where trading remains prohibited in mainland China, with Hong Kong offering only regulated bridges through its licensed platforms and spot Bitcoin and Ether ETFs.
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