Modi government's crackdown on China, no-entry of Chinese investors in LIC IPO!

The Government of India wants to stop Chinese investors from buying shares in Life Insurance Corporation (LIC). LIC's IPO is about to come in the next few months.

New Delhi: The Government of India wants to stop Chinese investors from buying shares in Life Insurance Corporation (LIC). LIC's IPO is about to come in the next few months. The central government is considering allowing foreign investments in IPOs. However, it wants to prevent Chinese investors from buying its shares. The news agency Reuters has given this information quoting 4 senior government officials and a banker. This development shows the tension arising after the border dispute between the two countries.

 

Let us tell you that LIC is the largest insurance company in the country and its stake is more than 60 percent of India's life insurance market with assets of more than $ 500 billion. The potential size of LIC's IPO is $12.2 billion and it could be the largest IPO in the country till date. In this IPO, the government is planning to allow foreign investors to invest.

 

However, India has turned a blind eye to Chinese investors and is considering stopping their investments. A government official said that after the conflict on the border, India's situation with China has changed. There has been a lack of trust between the two countries. In the midst of all this, trade with China cannot be done as before. Also, Chinese investment in a company like LIC can increase the risk.

 

It is worth noting that last year there was a violent clash between the Indian and Chinese forces in the Galvan Valley. After this the tension between India and China reached its peak. In this clash, 20 soldiers of the Indian Army were martyred. Since then, India has taken many big steps to limit Chinese investments in some sensitive sectors. These include steps like banning many Chinese mobile apps and additional checks on the import of Chinese goods. 

 

News is originally take from: https://www.newsnationtv.com/india/news/modi-government-crackdown-on-china-no-entry-of-chinese-investors-in-lic-ipo-212697.html