India likely to block Chinese investment in LIC IPO
New Delhi : India has planned of blocking the Chinese investors from buying the shares of Indian insurance giant Life Insurance Corp (LIC), which will soon go to public, reported a news agency.
State-owned LIC is considered a strategic asset, commanding more than 60% of India's life insurance market with assets of more than $500 billion.
The government is planning to allow foreign investors in one of the biggest ever IPOs worth a potential $12.2 billion, Chinese investors are likely to be kept out from this.
The political tensions had rocketed last year after the Chinese soldiers had done an incursion on the Pangong lake. Post that India had banned a number of Chinese applications.
"With China after the border clashes it cannot be business as usual. The trust deficit has significantly widen(ed)," one of the government officials told news agency Reuters, adding that Chinese investment in companies like LIC could pose risks.
India's finance ministry and LIC did not respond to Reuters emailed requests for comment. China's foreign ministry and commerce ministry did not immediately respond to requests for comment.