By Mewati Sitaram – Mumbai
China’s central bank, the People’s Bank of China (PBOC), has steadily built an investment portfolio worth approximately Rs 40,000 crore (around $4 billion), comprising stakes in 35 major Indian companies. This includes well-known names such as ICICI Bank, HDFC Bank, Infosys, and Power Grid Corporation.
PBOC’s investments have primarily been in listed companies, allowing it to operate within India’s regulatory framework. By adhering to legal thresholds, the bank has managed to avoid triggering alarms typically associated with significant foreign investments. The strategy reflects a calculated approach to diversify its holdings while maintaining compliance with India’s foreign investment rules.
The portfolio’s construction comes at a time when Indian regulators maintain a watchful eye on foreign investments, especially those originating from countries with which India has sensitive geopolitical ties. While sectors like banking, IT, and infrastructure remain attractive to foreign investors due to their robust performance and growth potential, investments from Chinese entities are often scrutinized for potential strategic implications.
This quiet yet substantial entry into Indian equities underscores the People’s Bank of China’s confidence in India’s economic resilience and growth trajectory. However, it also raises questions about the broader implications of such investments, given the delicate state of India-China relations.
Indian authorities are likely to continue monitoring these investments closely to ensure that they align with the country’s strategic and economic interests. For now, PBOC’s portfolio highlights the growing allure of India’s corporate sector for global investors, even as geopolitical dynamics remain complex.
This development serves as a reminder of the interconnected nature of global financial systems, where strategic investments can simultaneously signal economic confidence and necessitate regulatory vigilance.
Editor in Chief : Mewati SItaram
