Singapore's sovereign wealth fund Temasek is sticking with its bets on China, looking past recent volatility to gradually increase its exposure.
"We remain confident in the long term prospects of the Chinese economy," Wu Yibing, head of China investments at the 266 billion Singapore dollar ($196.09 billion) fund, said at the press conference announcing the fiscal year results. "The Chinese government is determined to foster the Chinese capital market into one of the most important capital markets in the world and we believe in that, as well that the Chinese economy would become one of the most important economies in the world."
Around 27 percent of Temasek's portfolio is concentrated in China, up from 25 percent last year, although that's still below the 28 percent still in Singapore this year. While the fund pared its stake in China Construction Bank, selling around a 1 percent stake, the bank remains one of Temasek's largest holdings, accounting for around 6 percent of the total portfolio.
Temasek is undaunted by either concerns over the mainland's slowing growth or its recent stock market volatility, which saw shares there drop over 25 percent during the past month.
"We are actively building our position in the Chinese capital market," Wu said. "The short term correction, we believe, is volatility in the long term growth of the capital market and we actually view the volatility may present good opportunity for us to invest as well."