Singapore’s GIC says still exploring China investment opportunities

SINGAPORE, Feb 14 (Reuters) – Singapore sovereign wealth fund GIC stated it continues to scout for long-term funding alternatives in China, taking a look at a variety of industries, including that it maintains important publicity to giant markets similar to China.

The assertion comes after the Monetary Occasions reported earlier within the day that GIC (GIC.UL) had put the brakes on non-public investments on the earth’s second-biggest economic system because it steps up scrutiny of dangers.

GIC additionally scaled again commitments to China-focused non-public fairness and enterprise capital funds over the previous 12 months, the FT stated, citing unnamed sources.

“Whereas the general funding surroundings in China noticed a slowdown in deal-flow final 12 months, our on-the-ground group continues to discover long run alternatives throughout many sectors because of a rising middle-class, an entrepreneurial non-public sector, in addition to China’s decarbonisation efforts,” a GIC spokeswoman stated in an emailed assertion to Reuters on Tuesday.

GIC is the world’s fifth-biggest sovereign investor with $690 billion in belongings, in keeping with analysis agency SWFI. It counts giant listed Chinese language corporations in its portfolio and has not introduced any huge gross sales of privately held Chinese language corporations over the previous 12 months.

“With China’s home market measurement, there may be good potential for buyers to spend money on good corporations and develop with them over the long run,” the assertion stated.

Within the 12 months to March 2022, the USA was GIC’s largest market, making up 37% of its portfolio whereas Asia excluding Japan contributed 25%.

Following a sweeping regulatory crackdown in China in 2021, enterprise capital funding fell sharply final 12 months, with many buyers nursing losses on Chinese language portfolios. Globally, enterprise capital funding has additionally fallen sharply because of a sell-off in fairness markets.

GIC’s group chief funding officer Jeffrey Jaensubhakij has additionally stated China’s regulatory surroundings had grow to be a lot clearer.

Buyers may benefit by investing in small corporations in China and GIC was working with corporations and different buyers on such alternatives, he stated in a panel dialogue on the World Financial Discussion board in Davos final month.

Reporting by Anshuman Daga and Yantoultra Ngui; Further reporting by Shivani Tanna in Bengaluru; Enhancing by Himani Sarkar and Edwina Gibbs

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