Nov. 7 – China’s investment arm, Central Huijin Co., has agreed to lend state-owned Agricultural Bank of China (ABC) a RMB130 billion capital injection for its stock listing.

According to China Daily, Central Huijin and the Ministry of Finance each will have half of the bank’s ownership. Central Huijin will help ABC improve corporate governance and boost the bank’s capital base, improve its financial status and enhance its profitability.

In the first three quarters of the year, the bank’s profit increased by 35 percent year-on-year to RMB98 billion. As of September 30, ABC’s deposits amounted to RMB5.9 trillion and loans RMB3.97 trillion, an increase of RMB690 billion and RMB300 billion from last year’s figures.

Of the total loans for the year, RMB1.39 trillion were given to agriculture-related projects. Xiang Junbo, the state-owned bank’s president, told China Daily that the injection would also be used to develop its rural network and increase agricultural lending.

ABC is one of the top four banks in the country. Founded in 1949, it has its headquarters in Beijing with branches throughout mainland China, Hong Kong and Singapore.