Caixin
Jul 13, 2022 06:09 PM
FINANCE

China Is No Longer Temasek’s Top Investment Destination

What’s new: China as an investment destination slipped to second place in Singaporean state-owned investor Temasek Holdings Pte. Ltd.’s portfolio for the financial year ended March 31, the firm’s latest annual report showed Tuesday.

Temasek’s portfolio exposure in China stood at 22%, down from 27% in the previous financial year. This marked the second straight annual drop. Meanwhile, Singaporean assets moved to the top spot with 27% of the company’s total exposure.

Details: Temasek said in a statement that it continued to invest in China’s “new economy sectors focusing on new consumption patterns, sustainability and innovation.” Its bets included:

— Vanke Logistics Development Co. Ltd., a dry warehouse and cold chain developer and operator controlled by property giant China Vanke Co. Ltd.;

— Shanghai Hydrogen Propulsion Technology Co. Ltd., a hydrogen fuel cell developer;

— Hangzhou-based Whale Technologies Co. Ltd., a digital marketing tech company.

The background: China’s economy has suffered from repeated Covid-19 flare-ups over the past few years.

The country may face challenges achieving its 2022 GDP growth target of around 5.5%, given weakness in its growth so far this year, Temasek said. Policymakers will likely continue to support growth to cushion the impacts of poor property sector performance and Covid-19 restrictions, it said.

As of March 31, the net value of Temasek’s portfolio was S$403 billion ($297 billion), up S$22 billion year-on-year. Its one-year rate of return for shareholders was 5.81% in Singapore dollar terms.

Related: Temasek Makes Carbon Emissions Essential to Its Investment Decisions

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Zhang Yukun (yukunzhang@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)

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