In a major development, the People's Bank of China picked up 1.01 per cent stake in the lending major Housing Development Finance Corporation (HDFC). The development took place last month.

The central bank of China has acquired nearly 1.75 crore shares in HDFC during the quarter ended March, according to data submitted by the company at the BSE.

The development comes at a time when the share price of the lender has been plunging. During the past one month the stock prices of HDFC fell over 25 per cent amid the beating across stocks due to the coronavirus crisis.

Foreign portfolio investors hold 70.88 per cent stake in the company which also includes a 3.23 per cent shareholding of the Government of Singapore.

Many institutional investors such as Life Insurance Corporation (LIC) have shown interest in investing in HDFC. Last year, the insurance major increased its holding in HDFC Ltd to 4.67 per cent from 4.21 per cent.

Foreign portfolio investors hold 70.88 per cent stake in HDFC. This also includes the 3.23 per cent stake held by the Government of Singapore.

Currently, the shares of HDFC are at Rs 1,701.95 per share on the BSE.

The People's Bank of China has investments across the world. It has stakes in several companies across the world, including BP Plc and Royal Dutch Shell Plc.

According to reports, several China-backed funds including Industrial and Commercial Bank of China (ICBC) and China Investment Corporation (CIC) are now looking for investment opportunities in Indian financial assets as valuations of local companies take a hit in the wake of the spread of the coronavirus.

A few of these big funds have even asked bankers to look for companies where they can invest.

(With inputs from IANS).