China’s central bank, the People’s Bank of China (PBoC), has been quietly increasing its stake in India’s stock market, with an estimated portfolio worth ₹40,000 crore. This highlights China’s growing interest in Indian equities, particularly in banking, IT, and consumer-driven companies.
Let’s take a closer look at the top 10 Indian stocks in which the PBoC has made significant investments.
Top 10 Investments of China’s Central Bank in India
1. ICICI Bank – ₹6,139 Crore Investment
ICICI Bank, one of India’s leading private sector banks, holds the largest Chinese investment in the Indian stock market. The bank’s strong retail and corporate lending business makes it a favorite among global investors.
2. HDFC Bank – ₹5,343 Crore Investment
As India’s largest private sector bank, HDFC Bank is known for its stable growth and strong asset quality. The PBoC’s investment in HDFC Bank indicates confidence in India’s financial sector.
3. Infosys – ₹5,303 Crore Investment
India’s second-largest IT services firm, Infosys, is a key player in the global digital transformation market. The Chinese central bank’s interest reflects the potential of India’s booming IT industry.
4. TCS – ₹3,619 Crore Investment
Tata Consultancy Services (TCS), the largest IT company in India, has been a consistent performer in the global tech space. Its robust revenue growth and strong order book make it an attractive investment.
5. Kotak Mahindra Bank – ₹1,604 Crore Investment
Kotak Bank, with its strong retail and corporate banking divisions, is another financial institution favored by the PBoC. It has a reputation for high governance standards and profitability.
6. Bajaj Finance – ₹1,602 Crore Investment
Bajaj Finance, India’s largest NBFC, is a leading player in consumer lending, digital payments, and small business loans. Its impressive growth has attracted foreign investors, including the Chinese central bank.
7. Hindustan Unilever – ₹1,534 Crore Investment
As India’s largest FMCG company, Hindustan Unilever is a dominant force in the consumer goods sector. The PBoC’s stake signals confidence in India’s growing consumption story.
8. Power Grid Corporation – ₹1,414 Crore Investment
Power Grid, India’s largest power transmission company, plays a crucial role in the nation’s energy infrastructure. The investment here aligns with China’s interest in power and infrastructure businesses.
9. Maruti Suzuki – ₹1,198 Crore Investment
India’s leading automobile manufacturer, Maruti Suzuki, has consistently held a dominant market share in the passenger vehicle segment. The investment from China’s central bank showcases its belief in India’s auto sector.
10. Tata Motors – ₹1,171 Crore Investment
Tata Motors, which owns Jaguar Land Rover (JLR), has gained global attention due to its strong presence in electric vehicles (EVs). The PBoC’s stake indicates interest in India’s evolving EV market.
Why Is China Investing in Indian Stocks?
China’s investments in Indian blue-chip stocks highlight its confidence in India’s long-term economic growth. Some possible reasons include:
Diversification: Investing in India helps China reduce overdependence on its domestic market.
India’s Growth Potential: With one of the fastest-growing economies, India presents lucrative investment opportunities.
Strategic Interests: Sectors like banking, IT, and FMCG are key areas for economic influence.
Is This a Concern for India?
While foreign investments can boost liquidity and market growth, China’s growing presence in Indian equities raises concerns about economic influence. Indian policymakers and regulators keep a close watch on foreign direct investments (FDI) and foreign portfolio investments (FPI) from China, especially given past geopolitical tensions.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research and consult financial experts before making investment decisions.
