In a significant development for the Indian financial markets, China’s central bank People’s Bank of China (PBOC) has acquired 1.01% equity stake in Housing Development Finance Corporation (HDFC), India’s biggest housing mortgage lender.
As a matter of fact, corporate firms need to reveal the changes in the shareholding patterns at the end of every quarter. This is applicable only when an investor’s stake crosses the threshold of 1%.
Reportedly, PBOC held around 1.75 million shares as per the shareholding disclosures.
Currently, the shares of HDFC are at Rs 1,701.95 per share on the Bombay Stock Exchange. It is worth mentioning here that the People’s Bank of China (PBOC) holds stakes in companies across the globe, including Royal Dutch Shell Plc and BP Plc.
Over the last month, HDFC’s stock prices fell more than 25% owing to the coronavirus pandemic.
Earlier, in November 2018, the Indian subsidiary of China’s largest bank, the Industrial and Commercial Bank of China has set up USD 200 million fund for investing in the Indian MSME start-ups and other small businesses.