China's central bank acquires over 1 pc stake in HDFC Ltd

The Chinese central bank has increased its stake in mortgage lender HDFC Ltd to over 1 per cent at the end of March quarter, as per statutory disclosures.

People's Bank of China's holding in HDFC stood at1,74,92,909 equity shares, accounting for 1.01 per cent of the share capital of the company as of March-end, as per exchange data.

Equity indices have corrected by a fourth in the last two months, as fears of coronavirus gripped investors globally, leading to heavy selling that possibly offered the bottom-fishing opportunities.

According to reports, Chinese banks were looking for newer avenues of investments in India.

The price at which shares were purchased could not be confirmed.

HDFC stock saw a 33 per cent correction during January-March quarter - from Rs 2,433.75 on January 1 to Rs 1,630.45 on March 31.

It had hit a low of Rs 1,501.80 apiece on the BSE on March 24, from where it saw a sharp rally to Rs 1,754 on March 27.

Central banks typically have investments in various asset classes including gold, foreign currencies and also bonds, including both government and corporate ones.