BEIJING, China: China is moving ahead with a combined US$54 billion capital boost for major state-owned banks and insurers, with the finance ministry leading the effort to strengthen capital across the country's financial system.

China Life Insurance (Group) Co, the country's largest life insurer, will receive 35 billion yuan ($5.2 billion), while China Taiping Insurance Group will get seven billion yuan, the two groups said.

People's Insurance Company (Group) of China separately said it plans to raise as much as 15 billion yuan through a private placement of A-shares to the Ministry of Finance, with the proceeds to be used to replenish capital.

China Export and Credit Insurance Corp said the finance ministry will inject 10 billion yuan to strengthen its core capital, while China Reinsurance (Group) plans to raise 3 billion yuan.

The initiative could help strengthen state insurers that have been directed to support the stock market with medium- and long-term funds, while also positioning them to assist regulators in managing smaller, higher-risk insurance companies.

China's insurance sector has been dealing with declining profitability amid persistently low interest rates, while a number of small and medium-sized insurers have reported weakening solvency ratios.

"The injection is an important step by the country to enhance the financial sector's ability to serve the real economy and promote the high-quality development of the financial and insurance industries," China Life said in its statement, adding that it would strengthen the group's ability to withstand risks.

China Taiping said the funds would improve its solvency and other key indicators.

Three state lenders also announced Sunday that they would receive a combined 290 billion yuan in capital injections.

The recapitalization plan was first announced at China's annual parliamentary meeting in March, extending a financing mechanism previously used to strengthen other large state banks.

Agricultural Bank of China and Industrial and Commercial Bank of China said they plan to raise up to 160 billion yuan and 100 billion yuan, respectively, through private A-share placements to the finance ministry, China National Tobacco Corp and its subsidiaries.

Both banks said the proceeds would be used entirely to replenish core Tier 1 capital, helping sustain credit expansion as Beijing relies on state banks to support economic growth.

Weak loan demand remains a persistent drag on China's economy and has also been putting pressure on banking-sector profitability.

The Export-Import Bank of China, one of the country's three policy lenders, said the finance ministry will inject 30 billion yuan into the bank, strengthening its capital base.