China's central bank holds shares worth ₹40,000cr in Indian firms
What's the story
Despite persistent geopolitical tensions between the two nations, the People's Bank of China (PBOC) has been gradually expanding its investment portfolio in India. As per data compiled by Moneycontrol from various Ministry of Corporate Affairs (MCA) filings, PBOC held stocks in at least 35 Indian companies by the end of FY24. The investment is estimated to be worth around ₹40,000 crore.
Investment details
ICICI Bank is the biggest bet
PBOC's biggest bet in India is ICICI Bank, with shares worth ₹6,139 crore. The Chinese central bank also owns shares worth ₹5,344 crore in HDFC Bank and ₹5,303 crore in Infosys. It has also invested ₹1,414 crore in the Power Grid Corporation of India. Other major bets include TCS (₹3,619 crore), Kotak Mahindra Bank (₹1,500+ crore), Hindustan Unilever (₹1,500+ crore), and Bajaj Finance (₹1,500+ crore).
Growth
Initial investment and subsequent expansion
PBOC's first entry into the Indian market was a ₹15 crore investment in ICICI Bank during a qualified institutional placement in 2020. The bank has since increased its stake to 0.67% of ICICI Bank. However, it doesn't hold over 1% in any other Indian company it has invested in. This is according to the Securities and Exchange Board of India (SEBI) disclosure rules which mandate companies to reveal shareholders with over 1% equity.
Diverse portfolio
Investments in other Indian companies
PBOC also owns over ₹1,100 crore worth of shares in Maruti Suzuki, Ultratech Cement, and Tata Motors. Other companies in its portfolio include Bajaj Finserv, Asian Paints, and One97 Communications (Paytm's parent company).