China prepares £40bn stimulus for financial sector amid fears over sluggish growth

Beijing wants banks and insurers to bolster investment in stock market as it helps to replenish cash reserves

China will inject $54bn (40bn) into its financial sector as Beijing attempts to shore up banks and insurers in the face of faltering economic growth.

A host of financial institutions said they were due to receive billions of yuan in capital from state institutions including the ministry of finance and even the company that runs the country's tobacco monopoly.