The People’s Bank of China (PBoC) has purchased 1.75 crore shares or 1% in one of the largest housing finance lenders in India, HDFC Ltd. China has been buying stakes across major financial institutions in Asia amid the stock market crash in major economies.
The Chinese Central Bank has bought 1,74,92,909 crore shares, or 1.01 percent of the shareholding, according to exchange data. The timing of the share purchase is significant given that HDFC shares have been sliding in the recent weeks.
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HDFC’s Vice Chairman and CEO Keki Mistry told Moneycontrol that the PBOC has been an existing shareholder and had owned 0.8 percent in the company as of March 2019. The disclosure has been made now since the stake has hit the 1 percent regulatory threshold, Mistry said. They have been accumulating the shares over a year and are now holding 1.1 percent, Mistry said.
China, in recent years, has also significantly increased its investments in Asian countries, including Pakistan and Bangladesh, mainly in infrastructure projects and technology companies.