SINGAPORE sovereign investor Temasek Holdings wants to increase its holdings in China’s financial services and technology sectors, banking on the long-term growth prospects of the world’s second-largest economy.

    Temasek, which has two-thirds of its assets in Singapore, China and Australia, poured S$24 billion (US$19.27 billion) into new investments in the financial year ending March, a 20 percent increase from the previous year and the largest amount since the 2008 global financial crisis.

    The increase coincided with slower growth in its portfolio, which was hurt by weakness in Asian stocks and banks such as Standard Chartered.

    “China’s economic reforms will present opportunities for long-term investors such as Temasek,” China head Wu Yibing told reporters as the state investor outlined its investment strategy and outlook for the current financial year.

    He said Temasek would continue to invest in Chinese banks, which he called a “good proxy for long-term growth for the Chinese economy.” Temasek is ranked as the world’s 10th-biggest state-backed fund by the Sovereign Wealth Fund Institute.

    In addition to banks, Wu said Temasek was interested in China’s health care, resources and technology sectors, especially mobile Internet. The state investor owns a stake in Chinese e-commerce giant Alibaba Group Holding Ltd.

    The World Bank expects China’s economy to grow 7.6 percent this year, as a recovery takes hold after a series of government stimulus measures. A recent Reuters poll forecast economic growth either stabilized or edged up in the second-quarter, reinforcing the view that authorities have successfully arrested a cooldown.

    Temasek has faced criticism in recent years for its large exposure to the financial services sector, which accounted for a third of its portfolio last year.

    Some analysts, however, said they expect its investments in China’s financial sector to pay off in the long-term.

    (SD-Agencies)