People’s Bank of China buys 1.75 crore shares in HDFC Should India be worried?

The economic downturn has come in the whole world. This economic crisis is triggered by the spread of the coronavirus from China. All the major economic power in the whole world is at a loss. The value of the shares of all the big companies has fallen and at this time China is buying shares in every big company in the world in large quantities.

United States Department of State / Public domain HDFC Bank / Public domain

In India, the Central Bank of China, also known as People’s Bank of China, has purchased a 0.21% share of HDFC Ltd. After the purchase of this 0.21% share, China has become the owner of 1.01% shares.

HDFC Ltd is the Housing Finance Institution of HDFC Group. There are many other companies in this HDFC group which are HDFC Bank, HDFC Life, HDFC Pension, HDFC Mutual Fund, HDFC Sales etc. China has bought 1.75 CR shares in HDFC Ltd.

According to the Bombay Stock Exchange report, Singapore has about 3% shares in HDFC Ltd. China comes second after Singapore. In some countries of Europe, which is suffering from Coronavirus, the government has prohibited from buying more than 10% shares on Foreigner Investor.

According to a report on the Central Bank of China in 2014, this bank is the world’s largest asset bank. This bank of China has a lot of money which they are willing to buy shares of other company in a large amount.

Does India have any problem with this move in China?

These steps of China can become a great danger for India in the future. Right now, all the investors are withdrawing their money from the market, at this time whether India should take it in favour of China or time will tell about the danger of a future

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