Temasek in big Chinese securities push
Applies for S$897 billion new investment quotas under country's QFII programme
by Agencies 04:45 AM Jun 15, 2012
SINGAPORE - Temasek Holdings, which holds stakes in China's biggest banks, said yesterday it filed an application to boost its quota for publicly traded securities in mainland exchanges to tap the nation's long-term growth.
The Singapore investment company is seeking to increase allocations through the so-called qualified foreign institutional investor (QFII) programme, it said. Only approved institutional investors can buy or sell yuan-denominated securities within a preset quota under the QFII programme.
Temasek, which managed S$193 billion as of March last year, filed the latest application after the China Securities Regulatory Commission said in April it would more than double the amount that overseas institutional investors are allowed to invest in Chinese securities to US$80 billion (S$102.7 billion).
"They are obviously bullish on the China A-shares market," said Mr Mohammed Apabhai, head of Asia trading strategy at Citigroup in Hong Kong. "I would expect it's because they are thinking there's more policy easing."
Temasek has applied for US$700 million (S$897 billion) new investment quotas under the QFII programme, the China Securities Journal reported yesterday, citing Ding Mr Wei, head of Temasek's China operations.
"China is the core market for Temasek's long-term investment and the country's blue chips have shown their investment value," the newspaper quoted Mr Ding as saying.
China has granted Temasek a combined US$300 million QFII investment quotas between 2005 and 2009.
Publish date: 15/06/12