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Postal Savings Bank of China to invest 2B yuan in fund

Postal Savings Bank of China Co. Ltd. decided to invest 2 billion yuan in National Financing Guarantee Fund Ltd., joining a number of other banks that have agreed to support the government-run fund.

The investment accounts for 3.0257% of the fund's registered capital, according to a July 27 release. Postal Savings Bank will pay the 2 billion yuan investment in installments in four years from 2018.

The investment will be funded by the bank's own capital. The bank said the investment will allow it to implement its inclusive finance development strategy. The fund was jointly established by China's Ministry of Finance and 20 institutions and aims to alleviate the financing costs of small and micro enterprises, agriculture and startups.

As of July 27, US$1 was equivalent to 6.81 Chinese yuan.