China bank buys 1 percent stake in Prudential

LONDON (Reuters) - China's central bank has bought a 1 percent stake in insurer Prudential (PRU.L) but not as a precursor to a takeover approach, The Sunday Telegraph newspaper reported.

The paper said on Sunday the People's Bank of China had bought stakes in several large European companies in recent weeks to take advantage of depressed markets and deploy some of its foreign currency reserves.

Prudential would not comment on the report.

(Reporting by Dan Lalor; editing by Elaine Hardcastle)