Complete analysis on China's central bank buys 1.01 % stakes in HDFC
Publishing date- 13/04/2020
Hello,
People's bank of china acquires significant shares in HDFC limited company.
Various people panicked from the news that global stock market has crashed down and chinese central bank and its major companies has had started buying stockes and takeover company at very low prices.
This is not like that as we see from headlines but again this can be a warning sign for India.
Here,point to be noted is that china's bank does not fully takeover HDFC bank.It just takes shares in HDFC Ltd.
HDFC group is a big group having its different sub groupes like:-
1.) HDFC bank
2.) HDFC pension
3.) HDFC mutual funds
4.)HDFC life
HDFC Ltd. is a housing finance institution.It only gives loans to people to buy homes or to real estate companies to build homes.
Just like India has Reserve bank of India(RBI) ,China has its people bank of china.Just like the role of RBI in India,China's central bank is responsible for carrying out monetory policy and regulations of financial institutions in mainland china.
Key point:- The people's bank of china has had the largest financial asset holdings of any central bank in the world since July 2017.
The headquarter of this bank is in country's capital beijing,china
People bank of china has total stake of 1.01% in HDFC Ltd. and recently this bank purchases nearly 1.75 crores shares in HDFC Ltd.
Previously,it had nearly 0.08% stakes in HDFC Ltd. So, this is not only because of coronavirus pandemic and between Jan to March,this bank buys 0.21% stake in HDFC Ltd. thus making it total shares to 1.01%.
For more information about the shares of HDFC,you can go to BSE(Bombay stock exchange) website for knowing the distribution of shares in HDFC Ltd.
Here,the question is why chinese companies and its central bank is buying stakes all over the world.
Also, between Jan to March,china has bought a record volume of crude oil from Russia. So,the question is that how china well planned about this crisis and knew previously that oil market will crash due to the coronavirus pandemic.
And,since china was pre planned its strategy for pandemic,like lockdowning Hubaei province and wuhan city differently and its better condition as compared to the superpower America ,its stock market rebound again and currently is the most powerful stock market around the globe.
And,countries like India whose stock market has crashed amid the pandemic and its dependency on US for stock exchange and also on US presedential election .
So,is this a nice idea to take money from china in this way.
We have to see how India react to this situation and makes its policy.
So,this was the complete analysis on this topic.
Hope you like the post.
For more such articles,stay updated with the blog.
Thank you
Jai Hind
Hello,
People's bank of china acquires significant shares in HDFC limited company.
Various people panicked from the news that global stock market has crashed down and chinese central bank and its major companies has had started buying stockes and takeover company at very low prices.
This is not like that as we see from headlines but again this can be a warning sign for India.
Here,point to be noted is that china's bank does not fully takeover HDFC bank.It just takes shares in HDFC Ltd.
HDFC group is a big group having its different sub groupes like:-
1.) HDFC bank
2.) HDFC pension
3.) HDFC mutual funds
4.)HDFC life
HDFC Ltd. is a housing finance institution.It only gives loans to people to buy homes or to real estate companies to build homes.
Just like India has Reserve bank of India(RBI) ,China has its people bank of china.Just like the role of RBI in India,China's central bank is responsible for carrying out monetory policy and regulations of financial institutions in mainland china.
Key point:- The people's bank of china has had the largest financial asset holdings of any central bank in the world since July 2017.
The headquarter of this bank is in country's capital beijing,china
People bank of china has total stake of 1.01% in HDFC Ltd. and recently this bank purchases nearly 1.75 crores shares in HDFC Ltd.
Previously,it had nearly 0.08% stakes in HDFC Ltd. So, this is not only because of coronavirus pandemic and between Jan to March,this bank buys 0.21% stake in HDFC Ltd. thus making it total shares to 1.01%.
For more information about the shares of HDFC,you can go to BSE(Bombay stock exchange) website for knowing the distribution of shares in HDFC Ltd.
Here,the question is why chinese companies and its central bank is buying stakes all over the world.
Also, between Jan to March,china has bought a record volume of crude oil from Russia. So,the question is that how china well planned about this crisis and knew previously that oil market will crash due to the coronavirus pandemic.
And,since china was pre planned its strategy for pandemic,like lockdowning Hubaei province and wuhan city differently and its better condition as compared to the superpower America ,its stock market rebound again and currently is the most powerful stock market around the globe.
And,countries like India whose stock market has crashed amid the pandemic and its dependency on US for stock exchange and also on US presedential election .
So,is this a nice idea to take money from china in this way.
We have to see how India react to this situation and makes its policy.
So,this was the complete analysis on this topic.
Hope you like the post.
For more such articles,stay updated with the blog.
Thank you
Jai Hind
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