With approval ofthe State Council, the China Central Safe Co. Ltd. and the China DevelopmentBank (CDB) signed an agreement on 31 December 2007 in Beijing to confirm capital injection of US$20billion by the former to the latter as of the day of signature.
Under theleadership of the State Council, the People’s Bank of China together with otherrelevant agencies designed CDB’s reform program after very careful deliberationsto promote the reform in an effort to implement the scientific approach ofdevelopment and the spirit of the recently concluded National Financial WorkConference. The capital injection will raise CDB’s capital adequacy ratiosignificantly, strengthen its resilience, and contribute to introduction ofmarket-based operations in the entire Bank. This is a fundamental measure andan important step in the reform of CDB.
