In a major development for the Indian financial sector, the People's Bank of China (PBoC) has taken up a 1.01 per cent stake in mortgage lending major Housing Development Finance Corporation (HDFC). The central bank of China acquired nearly 1.75 crore shares in HDFC in the quarter ended March, according to a regulatory filing. The development comes at a time when the share price of the lender has plunged more than 25 per cent in the past one month amid broader weakness in the markets due to the rapidly-spreading coronavirus pandemic.
Speaking to NDTV, HDFC vice chairman and CEO Keki Mistry said that the PBoC has been an existing shareholder and had owned 0.8 per cent in the company as of March 2019.
The disclosure has been made now since the stake has hit the 1 per cent regulatory threshold, Mr Mistry said. He also said the People's Bank of China has been accumulating the shares for over a year.
The People's Bank of China holds stakes in companies across the world, including BP Plc and Royal Dutch Shell Plc.