China's central bank sells HDFC shares
1 min read . Updated: 10 Jul 2020, 06:29 PM ISTAccording to the latest data disclosed by the lender to the stock exchanges, PBoC was not among key shareholders of HDFC as of 30 June 2020
People's Bank of China (PBoC) has sold a part or all of its stake in mortgage financier Housing Development Finance Corp Ltd (HDFC) in the April-June quarter, stock exchange filings show.
According to the latest data disclosed by the lender to the stock exchanges, PBoC was not among key shareholders of HDFC as of 30 June 2020. Shareholding disclosures on the stock exchanges highlight only those investors who own more than 1% stake. The exact quantum of shares sold by the Chinese central bank could not be ascertained immediately.
PBOC held 1.01% stake in HDFC as on 31 March 2020.
The Chinese central banks acquisition of HDFC shares had sparked concerns in New Delhi that Chinese investors were looking to pick up stakes in Indian companies, following a sharp correction in stock prices in March and April due to the covid-19 pandemic.
This led the government to amend foreign direct investment rules to ban automatic investments from Chinese companies and investors and putting a requirement that all such investments go through a government approval process.
On Friday, HDFC shares closed at ₹1886.25 down 2.87%, following reports of PBOC stake sale. The benchmark index, Sensex lost 0.39% to close at 36,594.33 points
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