India likely to block Chinese investment in mega LIC IPO: Report

With China after the border clashes it cannot be business as usual. The trust deficit has significantly widened, say sources

New Delhi wants to block Chinese investors from buying shares in Indian insurance giant Life Insurance Corp (LIC) which is due to go public, four senior government officials and a banker told Reuters, underscoring tensions between the two nations.

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. While the government is planning to allow foreign investors to participate in what is likely to be the country's biggest-ever IPO worth a potential $12.2 billion, it is wary of Chinese ownership, the sources said.

Political tensions between