Some $20 billion has been injected by the bank into a state agency that is gearing up to become a commercial lender.
China Investment Corp (CIC) made the move as part of its strategy of investing mostly at home.
A major point of the extra cash is that the China Development Bank will be able to meet the Chinese capital requirements for commercial banks.
The Chinese investor is set to profit hugely from foreign banks' interest after shares were made available to the public.
CIC owns ten per cent stake of private equity group Blackstone and has pumped $5 billion into Morgan Stanley to help the bank stabilise.
Britain will recognise the CIC after it bought a 3.3 per cent stake in Barclays for Â£1.5 billion.