Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

People's Bank of China buys stake in Prudential
The Telegraph ^ | 8/23/2008 | Mark Kleinman

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 ...


TOPICS: Business/Economy; Culture/Society; Foreign Affairs; News/Current Events
KEYWORDS: banks; globalism; prudential; trade

1 posted on 08/23/2008 5:12:32 PM PDT by bruinbirdman
[ Post Reply | Private Reply | View Replies]

To: AuntB

Things like this could be coming to America soon. Not a good sign.


2 posted on 08/23/2008 5:14:14 PM PDT by Clintonfatigued (If Islam conquers the world, the Earth will be at peace because the human race will be killed off.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Clintonfatigued

a lot of american corporations are for sale because of the low dollar.


3 posted on 08/23/2008 5:16:53 PM PDT by ken21 (people die and you never hear from them again.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Clintonfatigued

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.


4 posted on 08/23/2008 5:42:40 PM PDT by PugetSoundSoldier (Indignation over the sting of truth is the defense of the indefensible)
[ Post Reply | Private Reply | To 2 | View Replies]

To: bruinbirdman
Wouldn't be prudent, as Bush senior would say...
5 posted on 08/23/2008 5:45:59 PM PDT by JasonC
[ Post Reply | Private Reply | To 1 | View Replies]

To: ken21
But my business isn't. Any that openly partner up with American enemies, I will boycott. If the Brits or Singapore want to take a stake, knock yourself out. That is not what this is. This is worse.
6 posted on 08/23/2008 5:47:21 PM PDT by JasonC
[ Post Reply | Private Reply | To 3 | View Replies]

To: JasonC

the united states is doing a lot of business with china.


7 posted on 08/23/2008 5:49:30 PM PDT by ken21 (people die and you never hear from them again.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: ken21
Buying things from China, fine, even borrowing from China though it is a problem, especially given how much China simple steals from us by not paying for software or intellectual property of any other kind, OK. But China owning half the productive assets of the US is just slavery on the installment plan.
8 posted on 08/24/2008 6:32:16 AM PDT by JasonC
[ Post Reply | Private Reply | To 7 | View Replies]

To: JasonC

they and other countries buy our debt.


9 posted on 08/24/2008 6:36:41 AM PDT by ken21 (people die and you never hear from them again.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: ken21
I don't care about financial dealings with our *allies*, for the umpteenth time.

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.

10 posted on 08/24/2008 6:47:39 AM PDT by JasonC
[ Post Reply | Private Reply | To 9 | View Replies]

To: JasonC

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.


11 posted on 08/24/2008 6:54:28 AM PDT by ken21 (people die and you never hear from them again.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: ken21
Free markets involve free people and actual property rights. In China, the people are not free (see Tianamen) and everyone steals software without paying for it, rips off designer anything, etc.

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.

12 posted on 08/24/2008 7:28:39 AM PDT by JasonC
[ Post Reply | Private Reply | To 11 | View Replies]

To: JasonC

fyi

the united states stole british property rights in the industrial revolution.

the united states was a slave economy at the time.

grow up.


13 posted on 08/24/2008 1:04:56 PM PDT by ken21 (people die and you never hear from them again.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: ken21
We get it Ken21, you are a communist and a traitor, not for free anything. Now run along back to the daily kos and flack for your favorite commies there.
14 posted on 08/24/2008 2:23:10 PM PDT by JasonC
[ Post Reply | Private Reply | To 13 | View Replies]

To: JasonC

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!


15 posted on 08/24/2008 3:05:21 PM PDT by ken21 (people die and you never hear from them again.)
[ Post Reply | Private Reply | To 14 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson