[teaserteam]

Singapore’s sovereign wealth fund GIC has put the brakes on private investments in China as it steps up scrutiny of risks in the world’s second-biggest economy.....

The fund was “burnt bad” by the crackdown on Ant and has become wary of other unexpected moves from Beijing that could hit its investments or its ability to exit them, one of the people said.


https://www.ft.com/content/6f1f5f3d-1fb6...148142e056

[cityhantam]

Invest more in India lor! 

[teaserteam]

Singapore has wound down the investment in 2021.  Wont see the effect or result immediately because planning and development for major project would take easily 4 years from conceptual design to completion. Most of the investment will start in the 3rd year.

[cityhantam]

Dared to mention Ant Financial, the blood sucking company! 

[teaserteam]

SWF reported that GIC has denied the FT's report about putting a brake on the China investment but SWF note that

Global SWF data showed a drastic cut in GIC’s private market investments in China in 2022. The decline began in 2021 when its investments in Chinese private equity fell 43% from 2020 when the Singaporean fund invested a solid US$3.3 billion. Yet, GIC’s investment in the USA increased 13% to US$14.6 billion, Australia rose 21% to US$2.1 billion, the UK grew by an estimated 260% to US$5.55 billion in 2022. The three developed markets were GIC’s biggest in terms of private markets investment. Nevertheless, China remains the biggest part of GIC’s portfolio, making up 37% of AUM in FY2022, eclipsing Asian (ex Japan) which contributed 25%.

GIC’s investment trends followed the trends seen elsewhere in the sovereign wealth universe. Sovereign investment in private equity in China collapsed from US$5.8 billion in 2021 to under US$1 billion in 2022, mirroring the pivot towards the West.






https://globalswf.com/news/gic-follows-t...ts-benefit

[limkopi]

Why not GIC invest in Singapore stocks? Many great companies, priced at distress valuation. Super cheap. Great value.

Support own Singapore Incs better isnt it?

[revealer]

SWF reported that GIC has denied the FT's report about putting a brake on the China investment but SWF note that

If I were Singapore's SWF, I would also have denied the FT's report simply because the existing stakes in China are too big to offend any Authority in China. But the effects are there as many other countries' SWFs are pulling out too. It is the money in the mouth that will show the intent rather than the words.

[debono]

Why not GIC invest in Singapore stocks? Many great companies, priced at distress valuation. Super cheap. Great value.

Support own Singapore Incs better isnt it?

GIC wants bigger returns on investments..................that is why they go global..........

[ArielCasper]

Article say GIC significant pullback investing in China, but even say pullback already do what? Invest in another country, or preserve cash..

Or it is GIC significant pullback investing in all countries, but article chose to mention China only..

TS cut and paste article here lah.. No everyone got access to FT.

[Blasterlord2]

Article say GIC significant pullback investing in China, but even say pullback already do what? Invest in another country, or preserve cash..

Or it is GIC significant pullback investing in all countries, but article chose to mention China only..

TS cut and paste article here lah.. No everyone got access to FT.

Here's the article.

Singapore’s sovereign wealth fund GIC has put the brakes on private investments in China as it steps up scrutiny of risks in the world’s second-biggest economy.

GIC, one of the world’s largest investors in private equity funds, has scaled back commitments to China-focused private equity and venture capital funds over the past year, five people with knowledge of the matter said. It has also significantly slowed the pace of its direct investments in private Chinese companies.

Although GIC was an early backer of China’s economic growth story, some of the fund’s most senior figures have struck a more cautious tone on investing in the country during internal discussions over the past year, two of the people said.

The fierce debate inside one of Asia’s most powerful sovereign wealth funds reflects concern over how some of Chinese President Xi Jinping’s policies might affect investors despite the end of zero-Covid curbs that hit growth last year.

“They have dramatically decreased investments,” said one executive who had sought to tap GIC for funds to invest partly in China, adding that the “pivot” came at a time when it was difficult for funds to find other places to invest on the same scale.

ITjuzi, a data provider that monitors investments in China, recorded just two direct investments in Chinese companies by GIC last year, down from 16 in 2021.

Executives and senior managers are uneasy about growing geopolitical risk from souring US-China relations and are concerned that Xi’s “common prosperity” drive to reduce economic inequality in the country could have unintended negative consequences, two people close to GIC’s decision-making process said.

GIC, chaired by Singapore’s prime minister Lee Hsien Loong, has an estimated $700bn under management and has reaped impressive financial returns from China over almost three decades.

But GIC’s investments in China, which it does not quantify, have been hit by the country’s property crisis and Beijing’s crackdown on its own tech companies. The fund has been a significant investor in Chinese real estate and owns a stake in Ant Group, whose planned $37bn initial public offering was halted by Chinese regulators in 2020.

The fund was “burnt bad” by the crackdown on Ant and has become wary of other unexpected moves from Beijing that could hit its investments or its ability to exit them, one of the people said.

Investors said GIC executives indicated they were pausing investments and slowing decision-making commitments to China but were open to future discussions.

“This is consistent with what many sovereign wealth funds and pension funds are doing,” one of the people said. “Don’t be surprised if they’re among the first to come back . . . they know China much better than others.”

Private equity and venture capital funds targeting China deals raised a total of $108bn in 2021, up from $23bn in 2010, according to Preqin data, a sign of how capital has flooded into the country as its economy has boomed.

But fundraising slowed globally last year, as investors became more cautious about locking up their cash in illiquid funds.

The size of GIC’s publicly disclosed stakes in listed Chinese companies, a more liquid investment, fell 4.4 per cent in the year to December 2022, according to Bloomberg data, though it has risen 11 per cent since. The data does not include stakes that are below disclosure thresholds.

GIC, which has offices in Shanghai and Beijing, said it still had “significant exposures” to China and that it “continues to explore long-term opportunities”.

A quarter of GIC’s overall portfolio was invested in Asia, excluding Japan, in the year to March 2022, according to its annual report.

The reductions in China came as GIC ramped up overall investment. It deployed $40.3bn last year, 17 per cent more than in 2021, according to industry tracker Global SWF.

Other large investors have also become more wary of China as tensions with the US rise. The Ontario Teachers’ Pension Plan has paused direct investing in private assets in the country, partly because of geopolitical risk, Bloomberg reported last month.

[[[ForeverAlone]]]

LHL is " trying to be smart , act smart " Pro so much to India is a WRONG MOVE!

His dad LKY say before " India is MESSY Itself " He keep mention China will be a Super Nation and is true look at China now.

Beside USA.

This is Why LKY always pro to USA and China. SG will not lose anything as long pro to both side. Under his charge look how much SG earn come investment etc. Despite the usual losses which can't avoid come investment STILL PROFIT in decent.

EVEN Now USA and China conflict , is also Simple. Just be neutral.

[ArielCasper]

Here's the article.

Singapore’s sovereign wealth fund GIC has put the brakes on private investments in China as it steps up scrutiny of risks in the world’s second-biggest economy.

GIC, one of the world’s largest investors in private equity funds, has scaled back commitments to China-focused private equity and venture capital funds over the past year, five people with knowledge of the matter said. It has also significantly slowed the pace of its direct investments in private Chinese companies.

Although GIC was an early backer of China’s economic growth story, some of the fund’s most senior figures have struck a more cautious tone on investing in the country during internal discussions over the past year, two of the people said.

The fierce debate inside one of Asia’s most powerful sovereign wealth funds reflects concern over how some of Chinese President Xi Jinping’s policies might affect investors despite the end of zero-Covid curbs that hit growth last year.

“They have dramatically decreased investments,” said one executive who had sought to tap GIC for funds to invest partly in China, adding that the “pivot” came at a time when it was difficult for funds to find other places to invest on the same scale.

ITjuzi, a data provider that monitors investments in China, recorded just two direct investments in Chinese companies by GIC last year, down from 16 in 2021.

Executives and senior managers are uneasy about growing geopolitical risk from souring US-China relations and are concerned that Xi’s “common prosperity” drive to reduce economic inequality in the country could have unintended negative consequences, two people close to GIC’s decision-making process said.

GIC, chaired by Singapore’s prime minister Lee Hsien Loong, has an estimated $700bn under management and has reaped impressive financial returns from China over almost three decades.

But GIC’s investments in China, which it does not quantify, have been hit by the country’s property crisis and Beijing’s crackdown on its own tech companies. The fund has been a significant investor in Chinese real estate and owns a stake in Ant Group, whose planned $37bn initial public offering was halted by Chinese regulators in 2020.

The fund was “burnt bad” by the crackdown on Ant and has become wary of other unexpected moves from Beijing that could hit its investments or its ability to exit them, one of the people said.

Investors said GIC executives indicated they were pausing investments and slowing decision-making commitments to China but were open to future discussions.

“This is consistent with what many sovereign wealth funds and pension funds are doing,” one of the people said. “Don’t be surprised if they’re among the first to come back . . . they know China much better than others.”

Private equity and venture capital funds targeting China deals raised a total of $108bn in 2021, up from $23bn in 2010, according to Preqin data, a sign of how capital has flooded into the country as its economy has boomed.

But fundraising slowed globally last year, as investors became more cautious about locking up their cash in illiquid funds.

The size of GIC’s publicly disclosed stakes in listed Chinese companies, a more liquid investment, fell 4.4 per cent in the year to December 2022, according to Bloomberg data, though it has risen 11 per cent since. The data does not include stakes that are below disclosure thresholds.

GIC, which has offices in Shanghai and Beijing, said it still had “significant exposures” to China and that it “continues to explore long-term opportunities”.

A quarter of GIC’s overall portfolio was invested in Asia, excluding Japan, in the year to March 2022, according to its annual report.

The reductions in China came as GIC ramped up overall investment. It deployed $40.3bn last year, 17 per cent more than in 2021, according to industry tracker Global SWF.

Other large investors have also become more wary of China as tensions with the US rise. The Ontario Teachers’ Pension Plan has paused direct investing in private assets in the country, partly because of geopolitical risk, Bloomberg reported last month.

Thank for the article. Those risks that GIC experienced, not that they are new risks. CCP govt can change regulation anytime so that would have been factor in before they made the investment. Or maybe last time lky on better terms with CCP leaders, so anything will get some head up first.

But dun invest in china, invest in India meh.. like someone said, must as well invest in local companies and help them grow bigger. At least GIC is the govt here..

[sgbuffett]

Why not GIC invest in Singapore stocks? Many great companies, priced at distress valuation. Super cheap. Great value.

Support own Singapore Incs better isnt it?

Singapore STI
10yrs zero return. But when Dow drops it also drops.

Stare at the above chart carefully then you will realize there is a way to make money.

[ArielCasper]

Singapore STI
10yrs zero return. But when Dow drops it also drops.

Stare at the above chart carefully then you will realize there is a way to make money.

It is chicken and egg. If GIC invest more in local, will the chart still look like that. But the chart tell us when GIC did not invest enough in local, that is how the chart will turn out to be.

[Tee tiong huat]

GIC wants bigger returns on investments..................that is why they go global..........

Why not.....

[limkopi]

Aiyah, just buy up Singapore huge number of undervalued companies cheap cheap, repackage them and then sell back high high to some private equity firms lor. So easy.

[limkopi]

STI index, 20 years still hentak kaki. Just throw a few $billion in our shitty stock market and it will fly robin fly. Dont need a lot to push it up.

[Tee tiong huat]

GIC wants bigger returns on investments..................that is why they go global..........

54 Countries are there in Africa? Many to vest in 54, Aus and ZN...and also 13 ASEAN countries?. Not in India...

[sclim]

china is the world largest economy in ppp terms. for business that is more significant then old measure on usd term. example one can sell more car, house, furniture, clothing, mobile., brown goods, white goods etc in china then usa. the constant focus on usa is due to tradition and media reports. want to sell concentrate on the countries with larger population and buying power.
not one where they have to concentrate on garage sale to have money to buy another item.

[Purikura]

Nobody wants to invest in third world china which is a scam hub that is bankrupting soon.

Why do you think so many ah tiongs are poor and jobless? LOLOLOLOL

Sick man of asia is sick man of asia. Wumao sure not happy and triggered LOLOLOLOL

[moonrab]

China is too big to fail.
As long as she doesn't engage in a war, long-term prospects will be great...

Go Shanghai to see for yourselves. Even with the doomsday reports Internationally, the people carrying on their lives busily. 
No time for whinings and sneering..🤣

[moonrab]

china is the world largest economy in ppp terms. for business that is more significant then old measure on usd term. example one can sell more car, house, furniture, clothing, mobile., brown goods, white goods etc in china then usa.  the constant focus on usa is due to tradition and media reports.  want to sell concentrate on the countries with larger population and buying power.
not one where they have to concentrate on garage sale to have money to buy another item.

US only targeting on Technology advancement and markets. Using it to block China.
But there are thousands or millions of other products manufactured in China exporting internationally. 

If you minus the Taiwan and SCS issues, China's future prospect is as good as any other countries.