China's central bank will inject some of its war chest of foreign exchange reserves into two state-owned policy banks to support the government's overseas development plans, financial news magazine Caixin reported.

The People's Bank of China will inject $32 billion into China Development Bank (CDB) [CHDB.UL] and inject $30 billion into Export-Import Bank of China (EXIM) [EXIMC.UL], the magazine said in a report on its website, citing sources.

The capital injection will be conducted via converting entrusted loans into stakes, it said, adding that the central bank will become the second largest shareholder in the China Development Bank and the biggest shareholder of the Exim Bank.

The capital injections will provide long-term foreign currency for the banks to support Beijing's "One belt, One road" initiative for boosting connectivity between Asia, Europe and Africa, it said.

The Ministry of Finance will inject cash into Agricultural Development Bank of China (ADBC) [AGDBC.UL] - another policy bank that supports the farm sector, the report said but did not provide details.

China's cabinet said last week that it had approved the central bank's reform plans for CDB, Exim Bank and Agricultural Development Bank, in a bid to better finance projects during the current economic slowdown.

China's foreign currency reserves - the world's largest - fell by $110 billion in the first quarter to $3.73 trillion, amid signs of capital outflows.

China had previously used part of its foreign currency reserves to recapitalize big state lenders to help them restructure and list their shares.