While the news of COVID-19 has engulfed the entire country and people are counting the number of affected/deaths in their surrounding due to the pandemic, People’s Bank of China has made an entry in HDFC Ltd by purchasing 1.75 crore shares.
This has led PBoC to acquire 1% of share holding in one of the largest housing finance lenders in the country. The purchase is thought to be carried out between January and March 2020, when the shares had fallen by 40%.
During the stock market crash in recent time, China has been buying stakes across major financial institutions in Asia. If it gets hold of 5% shares in the banks, it will get a seat in Boards and start influencing the board elections.