China set to inject $60 billion in state banks

The People's Bank of China will inject $60 billion of its vast foreign exchange reserves into two state banks through its Central Huijin Investment arm.

The central bank will give $20 billion to China Development Bank (CDB), to aid its efforts to restructure as a commercial bank, according to China Daily, a government media outlet. The CDB is seen as one of the country's most healthy financial institutions, with non-performing loans of 0.68% for the first half of 2007.

According to local rep