2024-07-11 20:16:00
New Delhi: Singapore’s state-owned investment company Temasek has been one of China’s largest institutional investors for many years. But now it has started reducing its investment in China. For the first time in nearly a decade, the US has overtaken China in the company’s portfolio. Temasek is betting big on India as well as the US. The company says that the value of its assets in the country has declined due to the slowdown in China’s capital markets. But it is getting good returns from other markets. This has brought the net value of the company’s portfolio to $389 billion, which was $382 billion in the previous financial year. Temasek has long been among China’s largest institutional investors. In 2020, China’s share in the company’s portfolio was 29 percent. But after four years it has come down to 19 percent. In March, the US share in the company’s portfolio has increased to 22 percent. Singapore tops Temasek’s portfolio with 27 percent. The company is rapidly increasing its investment in India. Currently, India’s share in its portfolio is 7 per cent. This is the first time in nearly a decade that America’s share in the company’s portfolio has exceeded that of China.
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The position of China
Last year, China’s stock market performed very poorly. It was among the worst performing stock markets in the world. The country’s real estate sector is in deep crisis and consumer spending has slowed down. People are saving money instead of spending it. The reason for this is that they are not sure about the economy. Due to the real estate crisis, there is a danger of the entire economy sinking. This sector has a share of about 30 percent in the country’s GDP. Temasek officials say that America will remain the company’s biggest destination because doubts about China remain. America and China are the two largest economies in the world.