China invests crores of share in Indian bank amidst Boycott China movement

The recent investment all came up just after the Galwan Valley border clash with mainland soldiers and then the ban of the 59 Chinese apps.

0
China invests crores of share in Indian bank amidst Boycott China movement. The policy times

Amidst the ‘Boycott China‘ movement The People’s Bank of China has recently picked up a share of Rs.15, 000 crores in the Qualified Institutional Placement (QIP), country’s second-largest private sector lender just after they picked up a stake in housing finance major in HDFC. The recent investment all came up just after the Galwan Valley border clash with mainland soldiers and then the ban of the 59 Chinese apps.

Despite the small investment, there have been a lot of agitations in the market regarding this act. Perhaps there have been anticipations that there is something large design plan behind this small investment and the government also cites this as the ‘opportunistic takeover’ after the tightening of the foreign portfolio investments especially from the investment that has Chinese connections.

The People’s Bank of China is one of 357 institutional investors comprised of global institutions, insurance companies, and mutual funds. 0.0065 % is the amount of the stake of the People’s Bank of China in ICICI Bank. Already in the April June Quarter amidst the all tensions between China & India in the last few months China reduced some of his stake in HDFC as well, which was very minimal.  At this point, China is investing in a country like India that makes sense because they are already in a trade war with the USA, and they would prefer India than Europe too.

Samsung, Apple has shown interest in opening the assembling plants in India already amidst that the Investment in ICICI bank does not pose any threat to India.

The government of Singapore, Morgan Investment and Societe General were prominent investors. The government of Singapore among them had picked up 4.6 crore shares, representing 11.06 percent of the total size of the offer. Other prominent investors included Morgan Stanley Investment as per the TOI.

Confederation of All India Traders (CAIT) criticized the ICICI bank for allowing the People’s Bank of China to invest in the bank by knowing the current unpleasant tensions between China and India.

The ICICI spokesperson was not ready to speak on this whole. The traders’ body requested the Finance Minister to look deep into the policy matters and also the RBI to take necessary measures on this. They also asked HDFC and ICICI to take returns the investment to China.



 

Summary
Article Name
China invests crores of share in Indian bank amidst Boycott China movement
Description
The recent investment all came up just after the Galwan Valley border clash with mainland soldiers and then the ban of the 59 Chinese apps.
Author
Publisher Name
THE POLICY TIMES
Publisher Logo