People's Bank of China (PBOC) has sold a part of its stake in Housing Development Finance Corporation (HDFC), lowering its holding to less than 1 percent.
China's central bank was not listed in HDFC's shareholding disclosure for the June quarter, which identifies shareholders owning more than 1 percent of the company.
PBOC had raised its holding in the housing financier to slightly over 1 percent during the quarter that ended on March 31, 2020. The Indian government was reportedly not pleased with the fact that PBOC was able to raise its stake in HDFC without setting off any alarm bells.
"They are an equity investor like any other institutional investor," Keki Mistry, vice-chairman and chief executive of HDFC told Business Standard.
Mistry added that PBOC had trimmed its stake in April or May and their holding is now less than 1 percent.
Also read: How Chinese central bank’s move in HDFC alerted New Delhi to tighten rules
"I don't know exactly how much. It is a normal thing, the controversy (which was created) was unnecessary," Mistry said.
Market players said, as per the report, that PBOC might have cut its holding in HDFC to avoid the public glare.
PBOC hiking its stake in HDFC had increased scrutiny of foreign portfolio investors (FPIs) from neighbouring countries. It had also raised fears that China was trying to take advantage of a plunge in stock prices following the COVID-19 outbreak.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
