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.
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 (firstname.lastname@example.org) and editor Bertrand Teo (email@example.com)
Download our app to receive breaking news alerts and read the news on the go.
Get our weekly free Must-Read newsletter.
- MOST POPULAR