CHINA’s central bank has secretly amassed a stake in Prudential, the Britain’s second-biggest insurer.

The People’s Bank of China is thought to have acquired about 1% of the shares in the Pru — worth about £134m — putting it among the company’s top 25 investors.

The bank is said to have been snapping up the shares in the open market over the past few weeks.

However, observers believe that the Chinese institution is interested in the Pru as a long-term investment rather than using its stake as a platform for a future takeover bid.

The bank has been able to stay undetected on the share register because it has been using a nominee account to hold the shares, and because it has not breached the three per cent threshold above which all investors have to declare their holdings to the stock market.

Chinese institutions are investing more frequently in large Western businesses as they look to deploy their vast pools of capital.

Other large British companies in which the Chinese have become shareholders include BP, Rio Tinto and Barclays.

Prudential is well known in the Far East, where it has been building a significant presence.

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