Temasek Holdings investing S$10 billion into Chinese Banks

38 SG

This's what UK's Financial Times has said:

Temasek gambles on China

Ho Ching, chief executive of Temasek Holdings, Singapores state investment company, is in the middle of the biggest gamble since she took over in 2002 - a proposed investment of up to US$ 6billion in two large Chinese state-owned banks.

Temasek has suddenly emerged as the leading foreign investor in Chinas financial sector, buying a stake in Bank of China and pledging to buy a minority holding in China Construction Bank, the second and third biggest banks
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http://news.ft.com/cms/s/99220e12-1b00-11da-a117-00000e2511c8.html

38 SG

Here's another report from bloomberg on Temasek's investment in another bank--China Construction Bank:

Temasek to Invest $2.4 Bln in China Construction, People Say

For full report:

http://www.bloomberg.com/apps/news?pid=10000080&sid=aHNtgaJQ4hEc&refer=asia

Some extractions from the lenghty report:

1)Temasek wants to boost returns that averaged 3 percent in the past decade by investing in China's $1.65 trillion economy, which is 15 times the size of Singapore's. European and U.S. banks spent more than $6 billion buying stakes in China's lenders since 2003 to tap an economy that's grown an average 9.5 percent during the past two decades and where savings also total $1.65 trillion

2)Temasek offered to buy $1.4 billion of stock in China's China Construction Bank---the third-largest bank before an initial public offering in October, said the people, who declined to be identified. Construction Bank, based in Beijing, last month said Temasek would invest $1 billion in the IPO. Total amount is 2.4 Billion USD

3)Temasek owns 28 percent of DBS Group Holdings Ltd.

From the 3rd point, I checked today's straits times, today's DBS Market Cap. is around 24 Billion Sing Dollar. 24 X 28%= 6.7 Billion S$

Which means actually, Temasek's stock value in Bank of China will be roughly the same as its holding in DBS! Shocked Surprised

Cindyfeh SG

Originally posted by 38:

1)Temasek wants to boost returns that averaged 3 percent in the past decade by investing in China's $1.65 trillion economy, [/b]

"Yesterday's Today reported Dr Tan regards GIC's performance over the years as "respectable, above average". "

3% returns in the past decade? Wow! Very impressive sia! Perhaps thats the rate Dr Tan was talking about.

GIC/Temasek should sack everyone and buy SPIDERs or ETFs of different foreign stock exchanges that give better returns than a Singapore-class 3%.

http://finance.yahoo.com/q/bc?s=%5EIXIC&t=my

sbst275 SG

She interested in banks but not in ReiT..

Contradicting.. She also want fast short term returns

sgdiehard SG

remember nick leeson and Barings, it all happened in S'pore!! one of the major investment failure of GIC was buying of the american electronic company. Now, Singaporean companies, including GIC are buying up banks in Indonesia, Thailand.....all over the place, our problem remains, who are checking GIC??

LittleTiger SG

lost $$$..... sporean pay..... loh
earn $$$.... i poxkxt.... hahahaha

SMAPLionHeart SG

Thats what GIC is doing.

Laughing

zheshi SG

That why there call us chinese as the "jews of the east"

Money matter.. chinese count and think very well

Heartlander SG

Anyone has any details on how much losses the GLC has incurred in its ventures into BIL,Micropolis,and Suchou Park?

38 SG

GIC/Temasek's bad record associated with BIL:

1). government funded SGIC and Temasek Holdings company - Brierleys Investments (BIL) lost in excess of $190m in a failed 1993 geothermal power station venture in Indonesia

2)According to some reports, Singapore Airlines lost $NZ130 million in the
groundings of Ansett Airways in Australia.
In addition, Brierley's Investments a 30.3% shareholder of Air New
Zealand lost Aus$263m. Brierley's Investment is a Singapore-based
company. Temasek Holding, one of the main GLCs, holds a very large share
in Brierleys.

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CSpencer SG

I hope they earn more than what they lose, otherwise we singaporeans have to pay the price!

the rich gettting richer,the poor, gettting poorer

timothytsgsg SG

Another dubious investment with very little benefits for ordinary S'poreans, frankly.

LazerLordz SG

These things happen when you have a mandate not governed by transparency to the public, but rather to a committee which might not see things the man in the street does.

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