The People’s Bank of China (PBoC) purchases about 1.75 crores of equity shares in HDFC Bank. This is a recent affair. HDFC Bank is one of the largest private finance lenders.
The People’s Bank of China has around 1,74,92,900 equity shares in its kitty now. As per exchange data, its shares holding is approximately 1.01 percent of the total shareholding. This deal took place in the mid of February and March month.
The timing of purchasing shares was perfect and as per calculation. Due to pandemic coronavirus, HDFC’s shares were crashing. As per reports, at the beginning of February, HDFC shares fell around 40 percent.
During the same period, India’s benchmark for equity index NIFTY-50 and SENSEX both observed colossal fall. NIFTY-50 lost 27 percent, and SENSEX was down by 24 percent.
HDFC Bank is a strong fundamental share. Many institutional investors have seen interest in HDFC Bank. Recently, Life Insurance Corporation of India (LIC) has increased its shareholdings from 4.21 percent to 4.68 percent.
Keki Mistry, HDFC Bank’s CEO, told Moneycontrol that the People’s Bank of China was an existing shareholder. They were holding 0.8 percent of shareholders in the bank since March 2019. The information is disclosed now since they hit a 1 percent regulatory limit.
China is buying shares in major financial institutions across Asia and other continents. China is making massive profits as stock markets are crashed around the globe due to coronavirus.