Singapore state-owned investor Temasek cut allocations to Chinese markets over the past 12 months, which previously represented the highest portfolio weighting, in the midst of concerns about slowing growth.
China was no longer the top geography in terms of portfolio allocations after Temasek reduced exposure to 22 percent, as of end-March according to its annual report, compared to 27 percent last year and 29 percent in the year before. Dethroning China at the top spot was Singapore with a 27 percent allocation, compared to 24 percent a year ago.
The Americas represented 21 percent of allocations followed by Asia ex-Singapore and China (14 percent) and Europe, Middle East & Africa (12 percent).
Temasek’s portfolio value totaled S$403 billion ($297 billion), up from S$381 billion last year.
«Regulatory Headwinds Are Behind Us»
According to Temasek, China faced a number of challenges including ongoing property troubles, US-China tensions and an economic slowdown. Nonetheless, it remained positive on the market in the long-term, underlining improvements in the regulatory environment.
«Most of the regulatory headwinds are behind us,» said Temasek chief investment officer Rohit Sipahimalani, highlighting China as one of the best performing markets this year despite prevailing turbulence.
China continues to be an important market, Temasek said during an earnings call, underlining bets in artificial intelligence, city infrastructure and so-called «deep tech» – or cutting edge technology like semiconductors.
