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China 'to pump billions into big banks' to counter economic weakness

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China 'to pump billions into big banks' to counter economic weakness

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As China’s economy slows the government has reportedly made available 100 billion yuan for each of the country’s top five banks.

That is a total of almost 62.8 billion euros ($81.35 billion) of stimulus money in the form of three-month loans.

There has been no official announcement, but various media sources are reporting the move, quoting analysts, traders and even a central bank official.

Global shares and commodity prices rose on the reported stimulus.

The world’s second-largest economy suffered its weakest growth rate in a year and a half in the first quarter of this year as the housing market slowed.

It accounts for more than 15 percent of China’s annual economic output.

In addition data out at the start of the week showed China factory output grew at the weakest pace in nearly six years in August.