Temasek largest foreign investor in Chinese banks

Data from SNL Financialreleased earlier this week,showed that Singapore state-owned fund Temasek Holdings is the single-largest foreign investor in Chinese banks amongst the top 25 foreign investors in China. The SNL index also showed that Chinese banks had outperformed their regional peers in the Asia-Pacific, including Japan and Australia.

The SNL China Bank index gained 34.71 percent in the one year through March 31, outperforming the SNL APAC Bank index, which rose 7.56 percent.

Data on foreign investments in Chinese banks included all classes of publicly traded common shares, but excludes investments reported before January 2014. With the market value of each investors stake in a firm calculated based on the closing prices reported at the end of March 2015, Temasek emerged as the largest foreign investor. Temasek’s combined value across banks was estimated to be worth US$18 billion (S$24.5 billion).

Temasek has a six percent stake in China Construction Bank Corp (CCB), worth $12 billion, in addition to investments in the Industrial & Commercial Bank of China (ICBC) valued at $5.76 billion. Vanguard Group Inc and BlackRock Fund Advisors are ranked second and third respectively, with holdings in 15 Chinese banks valued at $6.14 billion and cross-sector holdings valued at US$4.96 billion respectively.

The two UK units of BlackRock maintained aggregate investments of close to $480 billion in the China market.But US institutional investors maintain the largest stakes in mainland Chinese banks, with a combined value of $20.1 billion of shares in Chinese lenders. Besides Temasek, Eastspring Investments, a unit of Prudential, maintains investments totalling $810 million in four mainland Chinese banks.

The fourth-ranked firm investing in mainland Chinese banks is Norges Bank Investment Management, maintains a portfolio worth $2.74 billion.

ICBC and CCB are popular with foreign investors, with 413 and 391 firms respectively holding stocks in them, according to the SNL data. CCB had the highest total value of foreign ownership, worth $25.03 billion. ICBC followed in second with $19.45 billion, while Bank of China had foreign ownership worth $11.09 billion. The Agricultural Bank of China had $5.68 billion of its value attributed to foreign investors.

Temasek has stakes in the Bank of China, China Construction Bank and the Industrial and Commercial Bank of China. Other banks that Temasek has invested in are Standard Chartered, Lloyds Banking Group, PT Bank Donavon and DBS Group.

Related Stories

Temasek completes acquisition of SVB India, rebrands it InnoVen

Temasek among investors in Dianping’s $850m funding round

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.