HDFC (Housing Development Finance Corporation), the biggest Private Sector Bank in India by Market Capitalisation as of March, 2020. It is also at the apex of House Financing structure in the country by Assests, HDFC Bank is one of the many subsidiaries by HDFC Limited. HDFC Life, HDFC Pension, HDFC Mutual Fund, HDFC Credila are some of the other Holding of the Company. Being a significant player in the Housing Mortgage Lending Sector in India it attracts many Individual Investors and AMC's (Asset Management Companies) from across the globe.
Whereas the People's Bank of China(PBoC), the Central Bank for the Chinese Government is the strongest Bank in the world since 2017 in terms of Asset to Liability Ratio therefore it is quite obvious for the Chinese Economy to be decently firm and growing as well.
Recently, PBoC bought 0.21% stake in the HDFC Limited between January to March resulting their total to 1.01% as they already had 0.80% stake of the ownership. They purchased 1.75 Crore Shares of the Corporation in this session. Major Financial Institutions of China are aggressively spectating the Market for any vital signs of Growth and Fall, as an Opportunity for Investment Or Withdrawal. The People's Bank of China isn't the only Foreign Entity to Invest into HDFC, The Government of Singapore has 3.23% stakeholdings whereas EuroPacific Growth Fund has 1.09% as well.
Note : A Company has to reviel it's Stakeholdings in any Foreign Entity if they anyhow increase to or above 1% for every Quarter. (January to March)
China bought record volume of Crude Oil from Russia as the European Market crashes amid COVID hence pulling the rates to abnormal levels. The Government of China has been maintaining less rivalry in the phase of Corona mixed with aggressive Buying Behaviour across the Globe, It has shot up it's Investing activities only when the Global Economy is at it's worst. Italy, Spain and Germany some among the worst hit nations have introduced certain Laws to protect their Economies from Future Hostile Takeovers (i.e., When a Countries Economy has been overtaken by a Foreign Entity by Capital Investments). They said, These Laws will now cover a wider range of sectors such as, Banking, Health, Infrastructure, Insurance and Energy for prospects who are looking to Invest upto or over 10% Stake into the Organisation.
Certain Question arises here are :
1) How was the Chinese Government so well Prepared for Investing when the Global Economy is going into deep Recession ?
2) Did they knew Everything and Is Economic takeover their Strategy to Slave the World ?
3) What should India do at this stage ?
4) Should India Establish more Rigid Policies and Laws like Italy for (FDI) Foreign Direct Investments ?
India Should Act before It's too Late.
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