Huijin to invest 100 bln yuan in China banks -report

BEIJING Aug 20 (Reuters) - Central Huijin, the largest shareholder of China's state-controlled banks, may invest about 100 billion yuan ($14.7 billion) in new shares offered by the country's biggest lenders, a state newspaper reported on Friday.

Those funds will come from 187.5 billion yuan in bonds that Huijin will be issuing soon in the domestic market. Bank of China (601988.SS), Industrial and Commercial Bank of China (601398.SS) and China Construction Bank (601939.SS) have announced rights issues to replenish capital depleted in last year's lending binge.

Huijin will use the remainder of the proceeds from its bond issuance, or 88 billion yuan, to inject in the Export-Import Bank of China (China Eximbank) and the China Export and Credit Insurance Corp (Sinosure), the official Shanghai Securities Journal cited an unnamed source as saying.

Huijin said on Thursday that it will issue the first batch of bonds on Aug. 24 in the form of 20 billion yuan of 7-year bonds and 20 billion yuan of 20-year bonds. [ID:nTST000357] ($1=6.789 Yuan) (Reporting by Aileen Wang and Simon Rabinovitch; Editing by Jacqueline Wong)