China to inject $30 bn into Agricultural Bank

BEIJING: The Chinese government will inject 30 billion dollars into the Agricultural Bank of China, the nation's weakest major lender, Premier Wen Jiabao told the Financial Times in remarks published on Monday.

The money, an increase from a previously announced 19 billion dollars, is part of a lengthy effort to make the bank fit for a stock listing, following in the footpaths of other major state banks in recent years.

"The China Agricultural Bank is the last among five national banks which is now undertaking a banking reform.... Our decision for this recapitalisation is around 30 billion dollars," Wen was quoted as saying.

The recapitalisation would happen soon, the paper said, quoting an unnamed Chinese official accompanying Wen on a trip to Europe, without giving a firmer timeline.

The Agricultural Bank, the financial backbone of China's vast rural interior, said in November it would be "technically ready for an initial public offering" in the second half of 2009.