The State Grid Corp of China's new energy subsidiary completed a 36.5 billion yuan ($5.03 billion) capital increase and share expansion project on Wednesday, representing the largest cash fundraising in the history of China's State-owned asset transactions.

According to the State Grid, the substantial capital injection will be entirely allocated to the construction of pumped-hydro energy storage projects.

This initiative is seen as crucial for promoting high-quality development in the pumped-hydro sector, accelerating the establishment of a new type of power system, and contributing to the stable growth of the national economy, it said.

The capital raised is expected to leverage over 300 billion yuan ($41.94 billion) in project investments, stimulating the development of related industries such as equipment manufacturing and technological research and development, said the company.

The company currently has 75 pumped-hydro power stations in operation or under construction, with a total capacity of 94 million kilowatts, making it the world's largest operator of pumped-hydro facilities.

"This capital increase and share expansion is a powerful measure to enhance China's pumped-hydro development capabilities, deepen electricity reforms and actively expand effective investment," said Zhang Zhigang, executive chairman of the company.

zhengxin@chinadaily.com.cn