Temasek “rebalances” investments in China’s Big Four banks

Singapore's sovereign-wealth fund Temasek Holdings has invested more in China’s largest bank at the expense of two other Big Four banks.

The “rebalancing move,” as Temasek put it, saw Temasek increase its stake to 1.3% in Industrial and Commercial Bank of China Ltd, China’s largest lender and the largest bank in the world by profit and market capitalization.

This comes at the expense of two other Big Four banks: China Construction Bank and Bank of China. Temasek sold 3.079 billion shares in BOC and 1.6 billion shares in CCB worth a combined US$2.48 billion.

After the rebalancing, Temasek will have about US$18 billion invested in leading Chinese banks. The sale of Temasek’s Hong Kong-listed shares was made via placements.

"The rebalancing move is also partly to prepare for other opportunities that may arise in China and elsewhere," a Temasek spokesman said.

He noted that Temasek continues to see leading Chinese banks as long-term proxies to the growing Chinese economy, as well as the country's rising middle income groups.