Government Bank of China buys stake in ICICI Bank among ‘Boycott China’
In March last year, China’s central bank increased its investment in HDFC to more than 1 percent. Then there was a lot of ruckus on it. People’s Bank of China is one of the 357 institutional investors who have recently invested Rs 15,000 crore in ICICI Bank.
China’s central bank bought stake in ICICI
357 institutions including Chinese bank have invested
Amid the boycott of Chinese goods in the country and the anti-China environment, the news is that People’s Bank of China has bought a stake in ICICI. However, experts say that this does not pose any threat to the national interest.
In March last year, China’s central bank increased its investment in HDFC to more than 1 percent. Then there was a lot of ruckus on it. People’s Bank of China is among 357 institutional investors including mutual funds, insurance companies who have recently invested Rs 15,000 crore in ICICI Bank’s Qualified Institutional Placement (QIP) offer. ICICI Bank tried to raise money from institutional investors to raise capital and its target was met only last week.
How much is the investment of Chinese bank
The central bank of China has invested only Rs 15 crore in ICICI and this investment has been done through qualified institutional placement. Other foreign investors include the Government of Singapore, Morgan Investment, Societe Generale, etc.
Experts say that banking is a very regulated business in India, which is under strict supervision of the Reserve Bank, so it cannot pose any threat to the national interest. Prior to this, there was a lot of uproar last year on the investment in HDFC Ltd., the housing loan company of this central bank of China.
China’s central bank is now increasing investment in other countries like India instead of America. In March last year, China’s central bank increased its investment in HDFC to more than 1 percent. Then there was a lot of ruckus on it.
After this, the government also tightened the rules for foreign portfolio investment. Strict regulations were made especially for investment coming from China or other neighboring countries. However, later the Chinese bank reduced its investment in HDFC by less than 1 per cent.
