China’s central bank People’s Bank of China now owns a 1.01 percent stake in housing finance major Housing Development Corporation Limited. The figure is reflected in the latest quarterly shareholding pattern of the company disclosed to the stock exchanges.
The Chinese Central Bank has bought 1,74,92,909 crore shares, or 1.01 percent of the shareholding, according to exchange data. The share purchase is likely to have happened between January and March.
The timing of the share purchase is significant given that HDFC shares have been sliding in the recent weeks. Since the first week of February, the shares have fallen by 41 percent. Between the first week of February and the last week of March, HDFC’s share price plunged 41 percent from a 52-week high of Rs 2500 to a 52-week low of Rs 1473. Its last traded price was Rs 1701.25.
In 2014, Chinese Central Bank had acquired stakes in many high profile Italian companies during the Euro zone debt crisis, when outlook on Portugal, Italy, Greece and Spain were the bleakest. It had picked up over 2 percent each in Italy’s largest insurer Generali and car market Fiat. It had also bought stakes in oil and gas firm Eni and utility major ENEL.