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Singapore's Temasek to invest 1 bln usd in China fund - report

Analysis

Singapore (XFN-ASIA) - State-linked Singapore investment firm Temasek Holdings will invest 1 bln usd into a private equity fund focused on buying stakes in Chinese state-owned firms, the Wall Street Journal reported.

The paper, citing unnamed sources familiar with the matter, said the Singapore firm would provide half the funds for the 2 bln usd private equity fund set up by Goldman Sach's China partner Fang Fenglei.

Temasek declined to comment on the report when contacted by Agence France-Presse. The report said the other half of the investments for the new China-centric fund will be sourced from other smaller investors.

Temasek, one of two vehicles used by the city-state to invest its massive savings globally, is among the world's top investors with a portfolio worth more than 100 bln usd. It has stakes in some of Singapore's best known firms including Singapore Airlines, port operator PSA International and Singapore Telecommunications.

In recent years, Temasek has stepped up its presence in Asia's growing economies such as China and Indonesia, snapping up stakes in telecommunications and the banking sectors.

In China, Temasek already owns stakes in major state banks such as China Construction Bank and the Bank of China. It also signed a deal to buy a 8.3 percent stake in China Eastern Airlines last month.

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