Oh dear. China’s ‘big four’ commercial banks lent money so willingly in 2009 that their capital adequacy ratios are barely above the statutory minimum of 11 per cent. The Bank of China, for instance, is apparently at 11.14 per cent.

Why should this affect China’s – and, by some accounts, the world’s – largest sovereign wealth fund? Because its domestic arm is the majority shareholder of the ‘big four’*. So China Investment Corporation has asked for a cash injection from the State Council, the country’s cabinet.

That cash would head for Central Huijin Investment Ltd., the domestically orientated Read more