Indian Authorities Want to Block Chinese Participation in IPO of LIC, Largest Local Insurer

Translated by: MOS Translation Team – Lakers

Reuters, Sept. 22: LIC, four senior Indian officials and a banking source have revealed that the India’s largest insurer and one of its strategic assets, is scheduled to make an initial public offering this year. The government is considering breaking existing rules to allow foreign institutional investors to subscribe for up to 20% of LIC’s IPO, but with apparent concern for investors from the Communist country.

The IPO of LIC, India’s state-run life insurer with a market share of more than 60 percent and total assets of more than $500 billion, is expected to be the largest in India’s history at $12.2 billion.

Tensions between the two countries have risen sharply since last year’s conflict in the India-China border region. The Indian government has begun restricting Communist Chinese investment in sensitive businesses and industries, banning Communist Chinese cell phone apps, and scrutinizing Communist imports. Officials say distrust between India and China has risen significantly and the Chinese investment in companies such as LIC could pose a risk. Indian authorities are seeking to develop policies that discourage Chinese communist investments but not overseas investors to protect the security of Indian assets.

As the Chinese Communist Party has set up many traps in Belt and Road projects in various countries, it has led to a lot of local economic and political instability. Countries have recognized these traps and have been on alert. Due to the border dispute between India and China and the CCP’s wolf-warrior diplomacy, it is inevitable that the Indian government will adopt a policy of blocking Chinese investment.

Edited by: Stay

Proofread by: Stay

Posted by: Stay

Source: https://cn.reuters.com/article/india-lic-ipo-chinese-investors-0922-idCNKBS2GI0X6?il=0

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