* Portfolio value rises 14 percent to S$275 billion
* Temasek earned 13.4 pct return vs -9 pct prior year
* Sees long-term opportunities in sectors such as tech
* Reports net divestments for year, first time since 2009
SINGAPORE, July 11 (Reuters) - Singapore state investor Temasek Holdings' assets rebounded last year and rose nearly 14 percent to a record S$275 billion ($199 billion), propelled by gains in shares of Chinese banks and of its mainstay Singapore companies.
Among the world's biggest investors, Temasek has been reshaping its strategy in the past decade to focus beyond Singapore and has poured cash into faster-growing sectors such as technology, life sciences and healthcare.
However, at its annual news conference on Tuesday, company executives expressed caution on the outlook for global markets.
"Looking ahead, we remain cautiously positive on global growth. But we are also cognizant of risks in valuations, liquidity and politics," said Michael Buchanan, head of strategy at Temasek.
Temasek's assets rose in the year ended March 31, 2017 after falling by 9 percent a year ago. Its long-held investments in financials, such as China Construction Bank, DBS Group and Standard Chartered, paid off last year as equity markets rebounded.
MSCI's Asia shares ex-Japan index jumped about 15 percent last year.
Temasek's investments nearly halved to S$16 billion last year, resulting in net divestments - the first time since the year ended March 2009 - highlighting its cautious stance.
Temasek's one-year total shareholder return was 13.4 percent, versus a negative 9 percent for the prior year.
Its investments are mostly in equities and it is the top investor in a third of companies in Singapore's benchmark index . Singapore and China represent the largest share in Temasek's portfolio by underlying exposure.
This week, GIC, Singapore's bigger state fund, reported a portfolio return of 5.1 percent per annum in U.S. dollar nominal terms over the five years to March 31, while China's sovereign wealth fund China Investment Corp reported a nearly 2 percent rise in its 2016 net profit on Tuesday. ($1 = 1.3821 Singapore dollars) (Reporting by Anshuman Daga and; Muralikumar Anantharaman; Editing by Himani Sarkar)