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Daily Insurance Industry News
Wednesday 23rd of May 2018
August 25, 2008

China’s central bank amasses stake in Prudential

by Gill Montia

Story link: China’s central bank amasses stake in Prudential

China’s central bank amasses stake in Prudential

According to reports in the press, the People’s Bank of China (PBC) has been amassing a stake in Prudential, using a nominee account.

The Times and Sunday Telegraph have both reported that the central bank now holds around 1% of the UK’s second-largest insurer.

The Government of China is apparently keen to use its foreign currency reserves in overseas markets and last year saw the establishment of the China Investment Corporation, which holds an estimated $200 billion in sovereign funds.

The central bank’s interest in Prudential, which has only become evident in the past week or so, could place it among the insurer’s top 25 institutional investors.

The move may reflect the fact that Prudential is experiencing strong growth in Asian markets and is keen to make acquisitions in the region.

In the first quarter of 2008, new sales growth in Asia forged ahead by 30%, to £375 million.

PBC it thought to have been an active investors across Europe in recent weeks, taking advantage of falling share prices. It is rumoured to have also bought shares in Legal & General and Old Mutual.

 

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