The People’s bank of china raised its holding in India’s biggest mortgage lender more than 1% at a time amid the coronavirus outbreak. 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 recent weeks. Since the first week of february, the shares have fallen by 41 percent. hdfc shares have fallen 32 percent from its 52-week high of Rs 2,499.65 on january 14, 2020. During this same period, India's benchmark equity index Sensex lost 25 percent while 50-share Nifty closed 26 percent down. hdfc shares closed at Rs 1,701.95 on april 10th.
It is not known whether the Chinese central bank bought all the shares between january and March. Companies need to disclose shareholding changes to the exchanges at the end of every quarter only if an investor's stake crosses 1 percent. hdfc owns a 19.43 percent stake in hdfc bank and 52.7 percent in hdfc Asset Management Company and 51.45 percent in HDF Life Insurance Company. hdfc bank, in turn, owns a 96 percent stake in HDB Financial services and 98 percent in hdfc Securities.
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