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Temasek, Blackstone Group bet on Chinese economy

  • Staff Reporter
  • 2014-07-15
  • 08:53 (GMT+8)
Wu Yibing, center, at a press conference in Singapore. (File photo/Xinhua)

Wu Yibing, center, at a press conference in Singapore. (File photo/Xinhua)

Singapore's sovereign wealth fund Temasek Holdings and American asset management firm Blackstone Group both maintain a positive outlook for the Chinese economy despites its slowing growth, reports the Shanghai Securities News.

Both of the companies' senior managers said markets have been overly concerned with China's slower growth and predicted that a major financial crisis is unlikely to hit the country.

Stephen Allen Schwarzman, Blackstone Group's founder, said some investors have stopped or suspended their investments in the country after it shifted down the gears. However, his firm has seen it as a great opportunity and spent US$539 million to buy Chinese software company Pactera Technology International. It also bought another medical company but has not revealed the details. Schwarzman said there are plenty of good investment opportunities in China but people have to make the right choice.

The percentage of Temasek's investments on China has increased by 2% to 25% between 2012 and 2013. Wu Yibing, head of the company's China division, said energy, life science, retailing and hi-tech are its major fields of investment.

Many companies in China have made world-leading innovations, especially in the field of mobile internet. China has been strengthening its competitive edge and the number of Chinese companies in the world's top 500 companies list has grown markedly. Wu said Temasek will seize the opportunity to increase investments in China, especially with the drives to urbanize and restructure state-owned enterprises.

Both of the companies are not positive on the outlook of China's property market. Wu said the declining growth of the market has created risk in related industries such as cement and steel, which have suffered from excessive production capacities. The current property inventories cannot be reduced without significant economic growth. The only glimmer in which the companies would consider a further look are the country's commercial properties since Chinese retailing and online shopping businesses are creating significant demand.

 

 

References:

Wu Yibing  吳亦兵

Who's Who

  • Zhou Jiping (周吉平)

    Zhou Jiping (周吉平)

    Zhou Jiping is general manager of PetroChina, the listed arm of the state-run China National Petroleum Corporation (CNPC) and is recognized as a ...