Fear of wealthy Chinese investors raiding the Indian stock market -is it real?


Published On: Wednesday, April 15, 2020 | By:

Fear of wealthy Chinese investors raiding the Indian stock market -is it real?

A fear of wealthy Chinese investors raiding the Indian stock market seems to be in rise. Securities & Exchange Board of India (Sebi) has asked custodian banks to disclose details of the ultimate beneficial owners’ of foreign portfolio investors (FPIs) based in China and Hong Kong. The UBO is the last natural person owning a fund or entities controlling a fund above a certain level. Sebi’s direction to custodians is an immediate reaction to the People’s Bank of China buying a little above 1% in HDFC considered as one of the blue-chip stocks. "Following the sharp fall in stocks, there is an anxiety among many corporates and parts of the government about Indian companies and assets facing takeover threats from Chinese investors – either private or directly or indirectly with support from the Chinese government. Probably, it’s an overreaction. But the paranoia is understandable with advanced countries like Australia creating hurdles for Chinese investors,” experts opined.

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