BEIJING, Dec 31: An arm of China’s massive new investment fund is to inject 20 billion dollars into China Development Bank as part of a restructuring plan, the central bank said on Monday.

Central Huijin Investment Co. signed a contract to provide the capital injection in Beijing, a statement on the central bank’s website said.

The capital injection will help raise the state-owned bank’s capital adequacy ratio and accelerate its full commercialisation, it said without elaborating.

Central Huijin is the domestic investment arm of the China Investment Corp. (CIC), which was launched in September to invest part of China’s huge, $1.4-trillion foreign exchange hoard.

CIC had previously promised to invest a third of its $200 billion in capital, or about $60 billion, in China Development Bank and the Agricultural Bank of China.—AFP