July 11, 2020 1:03:32 am
China’s central bank, the People’s Bank of China (PBoC), has reduced its shareholding in Housing Development Finance Corporation (HDFC) to below 1 per cent. According to the latest shareholder details filed with the exchanges, the Chinese central bank no longer holds more than one per cent stake in the Indian mortgage lender.
It is not clear if the PBoC continues to holds any stake in HDFC. It is mandatory for publicly-traded companies to disclose shareholdings of more than one per cent at the end of every quarter.
PBoC held 17.49 million shares, or 1.01 per cent, of HDFC equity capital at the end of the March 2020 quarter, according to a disclosure by HDFC. The value of the Chinese central bank’s stake was over Rs 3,000 crore. HDFC’s institutional holders — as per the latest statement — include LIC, Government of Singapore as well as funds run by Vanguard and Invesco Oppenheimer.
Chinese companies and banks had acquired stakes in several companies in Europe and the US in the last couple of years.
In April, the Centre tightened rules on investments in companies from neighbouring nations including China in a bid to reduce the risk of takeovers in the wake of a fall in share prices.
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