People’s Bank of China has now 1.01 % share in HDFC

HDFC head office in Mumbai.

HDFC head office in Mumbai.

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Mumbai, April 12, 2020: The People’s Bank of China (PBoC) has bought about 1.75 crore shares of HDFC Ltd, one of the largest housing finance companies in the country. According to a report by the news agency Bloomberg, China’s central bank bought 1,74,92,909 or 1.01 percent shares of the company. The company has given this information to the stock exchanges. This purchase of shares comes at a time when the company’s shares have seen a decline in recent weeks. Since the first week of February, the shares of the company have fallen by 41%.

China’s central bank held 1.75 crore shares of the company at the end of March, according to quarterly data made available to the stock markets on Saturday by HDFC. It is noteworthy that only last month, the company’s shares had fallen by around 25 per cent amidst concerns over the outbreak of the coronavirus epidemic, selling heavily in global markets. HDFC is one of the worst-performing stocks this year on the Sensex, a sensitive index based on 30 stocks of the BSE.

According to data compiled by Bloomberg, People’s Bank of China has invested in companies around the world. China’s central bank also holds stakes in such giants as BP Plc and Royal Dutch Shell Plc.

China is buying stakes in many of Asia’s biggest financial institutions, amid a sharp decline in stock markets due to coronavirus. In recent years, China has significantly increased its investment in major Asian countries including Pakistan and Bangladesh. China is mainly investing in infrastructure projects and technology companies.