China central bank hikes stake in HDFC amid a sharp correction in shares

Sources say PBoC may have increased its stake by 0.2 percentage points in March

The People’s Bank of China (PBoC) has increased its shareholding in Housing Development Finance Corporation (HDFC) amid a sharp correction in shares of India’s largest mortgage lender.

The Chinese central bank held 17.5 million shares (or 1.01 per cent) at the end of the March 2020 quarter, according to a regulatory disclosure by HDFC. 

Deepak Parekh, chairman, HDFC, said, “They buy on behalf of China’s sovereign wealth fund. We have to report information when the stake crosses 1 per cent.”

“PBoC has been an investor