The Sunday Telegraph: Chinese Central Bank Is Buying Up Shares In UK Companies
Calculations of the British newspaper The Sunday Telegraph show that the Central Bank of China has recently stepped up the purchase of shares of UK companies, including those that make up the key FTSE100 index – the largest companies by market capitalization, whose shares are traded on the London Stock Exchange. According to the publication, as well as statistics from Bloomberg, by now the Central Bank of China owns shares of such companies for a total of $17.1 billion. Back in the second quarter, the Chinese Central Bank owned these shares for only $2 billion.
In particular, it is reported that the Chinese state bank now owns 1.5% of such oil and gas companies as BP and Royal Dutch Shell. In the latter, the Central Bank of China is already the fourth largest holder of Class A shares. In addition, the Chinese state bank owns more than 1% of the cellular operator Vodafone and the mining companies BHP and Anglo American.
The Sunday Telegraph specifies that the Central Bank of China already owns stakes in more than 100 UK companies, focusing on shares of energy companies, which account for about a quarter of its portfolio in UK companies. In second place are shares in companies in the mining sector: 16% of the portfolio. The newspaper believes that the foreign stocks, which are owned by the Central Bank of China, are part of China’s foreign exchange reserves, which has recently begun to reduce its investments in the dollar and bonds. It is reported that the PRC Central Bank also owns shares of companies in several other countries, such as Italy and Malaysia. At the same time, according to Bloomberg, there are no American stocks in its portfolio.