SINGAPORE sovereign wealth fund GIC, one of the world’s top 10 investors, is optimistic about China’s technology sector despite the country’s sweeping regulatory actions that have hit shares in home-grown tech behemoths, including those listed in the United States.

Since late last year, China has moved quickly to rein in the giants of its so-called platform economy, which had taken advantage of a loose regulatory environment to rapidly expand their businesses.

The crackdown has impacted the sector’s shares, with the CSI Overseas China Internet index down 22 percent so far this year, underperforming broader indexes.

GIC, with assets under management of US$550 billion according to data platform Global SWF, retains a positive view on its Chinese investments due to the country’s handling of the pandemic, macroeconomic discipline and agility to respond to economic weaknesses, GIC chief executive Lim Chow Kiat said.

In the year to March 31, 2021, the fund saw its strongest annualized returns over a 20-year period, driven by a global market rally.

GIC’s China investment portfolio includes Alibaba and fintech affiliate Ant Group, food delivery firm Meituan, as well as real estate firm China Vanke and online health-care platform JD Health International.

In its latest move, China’s cyberspace regulator launched a probe into ride-hailing giant Didi Global earlier this month, just days after Didi made its New York debut and raised US$4.4 billion.

“If we looked at a lot of these actions, we would say they help in making the industries, the companies, the business models more sustainable,” said Lim, who joined GIC nearly 30 years ago as a portfolio manager.

Some analysts have said China’s regulatory actions would encourage fair competition and support broad-based growth.

“We see that China continues to come out with innovative business models and technology, so our confidence in the sector, and clearly the country remains positive,” Lim said. (SD-Agencies)