Beijing is planning a 300-billion-yuan capital injection into state-owned banks in 2026 to shield the financial system from mounting risks, according to the government work report released Thursday at the National People's Congress.

The move aims to shore up buffers against bad loans tied to the prolonged property slump and weak consumer confidence.

Analysts expect Industrial and Commercial Bank of China (SHA:601398, HKG:1398) and Agricultural Bank of China (SHA:601288, HKG:1288) to be the primary recipients, Reuters reported.

China is deploying a fresh 100 billion yuan fiscal fund aimed at revitalizing domestic demand. The capital will support loan subsidies and risk compensation schemes to encourage consumption and investment.

In a bid to outpace the U.S. in artificial intelligence and semiconductors, Beijing also pledged to deepen capital market reforms, creating a "green channel" to fast-track listings for technology companies.