China's central bank just bought stakes in two Italian banks whose shares dived overnight

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Not satisfied in supporting its domestic stock market, China’s PBOC has been busy diversifying into offshore assets — Italian banks.

The Chinese central bank has bought a 2% stake in lenders UniCredit and Monte dei Paschi di Siena, adding to a string of investments in large Italian companies. This was revealed in a regulatory filing on Monday, according to a report from Reuters.

On top of these investments, the PBOC also owns 2% stakes in Italian lenders Intesa Sanpaolo and Mediobanca. Previously the bank owned stakes in power grid operator Terna, oil major Eni, insurer Generali and car maker Fiat Chrysler.

Despite the news shares in UniCredit and Monte dei Paschi endured a tough session overnight losing 6.12% and 11.51% respectively.

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