India in April tightened rules on investments in its companies from neighboring nations including China in a bid to cut down the risk of expedient takeovers amid corona virus-led share price drops.
It is required for publicly-traded companies in India to expose shareholdings of more than 1% at the end of every quarter.
The People’s Bank of China has cut off the list of investors holding at least a 1% stake in the company as of end-June. The PBOC held about 17.5 million shares, accounting for a 1.01% shares, at end-March. It cannot be discovered if the Chinese central bank continues to holds any stake in the mortgage lender or not.
Hindu Business Line newspaper reported earlier, The PBOC may have sold at least a part of its shares in the open market, citing market sources. HDFC shares declined as much as 2.2% in Mumbai in early trading Friday. The stock fell 40% from its January record high to its April low but has since rebounded 27%.
China’s central bank has sold at least some of its stake in India’s Housing Development Finance Corp., according to shareholder details filed with the exchanges.
PBOC had magnified its stake in India’s largest shadow lender in the 12 months ended March.
It is important for publicly-traded companies in India to disclose shareholdings of more than 1% at the end of every quarter. HDFC’s global institutional holders as of the latest statement include the Government of Singapore as well as funds run by Vanguard and Invesco Oppenheimer.