Posted on 08/23/2008 5:12:32 PM PDT by bruinbirdman
China's central bank has acquired a secret stake in Prudential, Britain's second-largest insurer, as part of Beijing's increasingly active plans to deploy its vast pool of foreign currency reserves in overseas markets, The Sunday Telegraph has learned.
The shareholding of about 1 per cent in Prudential is understood to have been bought by the People's Bank of China during the past few weeks, placing it among the British insurer's top 25 institutional investors. People close to Prudential said the stake had been acquired using a nominee account.
There is no indication that the investment has been made as the precursor to any kind of corporate activity, such as a takeover approach. It is thought to be among a number of stakes acquired by the Chinese central bank in large European companies in recent weeks as it sought to take advantage of depressed share prices.
City sources last night named Legal & General and Old Mutual, the insurers, as other companies in which the People's Bank of China had been buying shares.
"It is not just the insurance sector. The Chinese have been buying stakes in a significant number of companies," said one person close to the situation. Banks, resources companies and pharmaceutical groups are among the other industries where falling share prices are likely to have proved attractive in recent months, according to the person.
Because the shareholdings are below the 3 per cent disclosure threshold, the purchases have not needed to be announced. Prudential declined to comment last night on its new shareholder, but people close to the company said there had been no subsequent contact with the Chinese central bank.
Chinese interest in Prudential's shares is unsurprising. The company has built an impressive business in the fast-growing markets of Asia, while its British and US businesses have remained
(Excerpt) Read more at telegraph.co.uk ...
Things like this could be coming to America soon. Not a good sign.
a lot of american corporations are for sale because of the low dollar.
Yep, it’ll turn out like the hand-wringing over the Japanese purchasing everything in the US in the late 80s. Much ado about nothing.
the united states is doing a lot of business with china.
they and other countries buy our debt.
And personally I think we should tell them they owe us about $1 trillion for software theft and simply take it out of the treasuries they bought.
They aren't helping us, they are helping themselves, and the sooner we tell them to go embrace themselves the better.
sorry you feel that way. i’m a free market guy.
the history of world progress comes from global trading and technology advances. always been so.
the attic greeks lost control of the vase market to the corinthians in the 6th c bc. when the athenians developed a better product, they reasserted themselves over the market.
you could go join the amish.
or become an orthodox jew. i was reading the other day that kids in some orthodox schools in israel take
no math or science courses. and i assume no economics.
economics should be required in american high schools so that kids understand our economy.
If China decides to become a free democracy, to respect Taiwan instead of threatening it by force, stops supporting terrorists around the world, and stops stealing, then you can talk to me about how free it is and what a wonderful market it is. In the meantime, it is a communist dictatorship running a bog-standard suppressed inflation and organized criminal rackets.
You aren't a free market guy, you are a dupe. Also, I know more about how our economy works than you ever will. You can go live in Shanghai, and get the heck off my American conservative site.
fyi
the united states stole british property rights in the industrial revolution.
the united states was a slave economy at the time.
grow up.
lol!
a communist because i do not agree with your isolationism?
my views derive from milton friedman, ayn rand, alan greenspan...very much free market economy and individualist.
have a good day!
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