China’s central bank sells stake in HDFC

Our Bureau Mumbai | Updated on July 09, 2020

People’s Bank of China (PBoC) has sold a part or all of its stake in Housing Development Finance Corporation Ltd (HDFC). As on June 30, 2020, PBoC does not figure in the list of foreign portfolio investors with over one per cent stake in HDFC. It could not be ascertained if PBoC continues to hold any stake in HDFC.

Market sources indicated that the Chinese bank may have sold at least a part of its shares in the open market. PBoC had entered the exclusive club of foreign portfolio investors (FPIs) with over one per cent stake in HDFC as at March end 2020.

PBoC, which is China’s central bank, then owned 1.01 per cent (1,74,92,909 equity shares) in India’s largest housing finance company.

PBoC’s holding in HDFC had raised concerns about Chinese financial institutions holding stake in Indian companies. The government, in April, tweaked the FDI rules, making government clearance mandatory for all investments from countries sharing a land border with India.

In a recent interview to Bloomberg Television, HDFC’s Vice-Chairman and CEO Keki Mistry said that PBoC’s stake in the company is now a little less than one per cent.

According to market sources, PBoC holds small stakes in other Indian companies, including Piramal and Ambuja Cements.

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Published on July 09, 2020
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