The People’s Bank of China plans to inject 500 billion yuan (£50bn) into the country’s largest banks in the latest move yet to halt China’s economic slowdown.

The move follows the ECB’s latest move to loosen monetary policy and comes in stark contrast to the actions of the US Federal Reserve, which is continuing to wind down its bond buying programme.

China’s government is targetting 7.5% annual GDP growth this year, a level already reached in the second quarter year-on-year.

However, that target has come under scrutiny following weak economic data from the region last week, including a report showing foreign direct investment in China is at its lowest level in over four years.

The government has therefore acted, giving the five largest banks – Industrial & Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China and Bank of Communications – a cash injection. All five jumped more than 1.5% on the news.

As a result, Hong Kong’s Hang Seng index also rallied 1% on Wednesday to 24.376, while the Shanghai Composite index rose 0.5% to 2,308.