PBOC builds up 1% stake in Prudential

The People’s Bank of China (PBOC), has built up a US$239.6 million stake in UK-based life insurance firm Prudential, the Financial Times reported. The 1% stake makes China’s central bank one of Prudential’s top 25 institutional investors and is a further example of China’s sovereign wealth being invested abroad, though it is not being seen as a strategic move. By falling below the 3% disclosure threshold, and being purchased through a nominee account, PBOC ensured a low profile for the investment. Prudential, which has a fund management and insurance joint venture in state-owned investment company CITIC, reported 14% sales growth in Asia in the first half of 2008.