Temasek to prioritise US deals and stay cautious on China
- Kelvin Tan
- Jul 9, 2024
- 1 min read
Singapore's state-owned fund, Temasek, plans to prioritize investments in the U.S. and take a cautious stance on China, following weaker returns attributed to its significant exposure to China. The fund’s portfolio rose only 2% to S$389 billion ($288 billion) in the year to March, underperforming the 28% gain of the S&P 500.
Amid Sino-U.S. tensions, Temasek focuses on U.S. investments with minimal reliance on Chinese imports and Chinese companies not dependent on U.S. exports. It also expressed caution on AI investments, avoiding direct stakes in OpenAI while leveraging venture capital funds.
Temasek has shifted towards private markets, with unlisted assets making up 52% of its portfolio. It aims to increase its focus on India, Japan, and Southeast Asia as alternatives to China, while maintaining the U.S. as a major investment destination.
Article by Kaye Wiggins for FT. Read more here or in the PDF below.
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