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Temasek’s shrinking China holdings don’t mean it’s leaving

At first glance, Temasek’s long-standing ardour for China seems to be fading. Its mainland holdings have had a shocker of a year, but the Singapore fund is buying.

A Temasek logo is seen at the annual Temasek Review in Singapore
Photo: Reuters

Is Temasek tempering its affection for China? The most striking figure beneath the 5.81% total shareholder return in the year to March 31, 2022, at Singapore’s equity-focused sovereign wealth vehicle was the fall in allocations to China from 29% to 22% of the portfolio in the space of just two years.

There is perhaps no other sovereign wealth vehicle in the world as exposed to China as Temasek, including China’s own sovereign fund (China Investment Corporation, which invests globally, some ring-fenced holdings in state banks notwithstanding).

Rohit SIPAHIMALANI_Temasek 400.jpg
Rohit Sipahimalani, Temasek

Over the years Temasek has been a big backer of companies, from China Construction Bank to Alibaba, and it has tended to do exceptionally well out of its positions.

But Temasek’s review period coincided with spirited debate about whether or not China’s unpredictable attitude towards regulation – particularly in the tech sector, to which Temasek is notably exposed – rendered it uninvestable from a risk-reward perspective.


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