Temasek Holdings elevated its China publicity by 10 billion Singapore {dollars} ($7.7 billion) final fiscal 12 months — the largest annual enhance in 5 years, because the state investor repositions its portfolio within the nation for a brand new development cycle led by synthetic intelligence and superior know-how.
“We noticed a rebound in China,” Chief Government Officer Dilhan Pillay mentioned on the agency’s annual evaluation Wednesday, including that the agency’s China publicity has grown by about SG$24 billion over the previous decade.
Temasek’s 5-year complete shareholder return stood at 4.6% for the 12 months ended March, weighed down by headwinds from China’s capital markets from 2021 to 2024, it mentioned, including that its publicity final 12 months grew alongside a rebound in market valuations.
Whereas Temasek’s underlying nation publicity to China declined to 17%, from 24% in 2016, it stays the fund’s third-largest market after Singapore at 27% and the Americas at 26% — which rose from 24% a 12 months earlier.
Inside China, the agency is rotating away from sectors that characterised earlier phases of its portfolio — shopper and actual property — towards what it referred to as “onerous tech,” equivalent to AI-related {hardware} and infrastructure, robotics, biotech, vitality transition.
China “is not the high-growth economic system — it is turning into a maturing economic system,” mentioned Chia Track Hwee, CEO of Temasek International Investments. “We should be selective in once we make investments [and] assemble a portfolio that’s extra related on this present regime.”
For consumption, Temasek sees alternatives in spending on experiences over items, and homegrown shopper manufacturers which have proved innovation capabilities, over overseas manufacturers. However restoration in home consumption stays “uneven and never but broad-based,” it mentioned, and extra coverage easing stays unlikely.
Luckin Espresso, ANE
New investments made in the course of the 12 months included Luckin Espresso and logistics group ANE in China, Anthropic and OpenAI within the U.S. and Ermenegildo Zegna Group in Europe.
Temasek, which had held oblique funding within the espresso chain by way of personal fairness agency Centurium Capital, disclosed a 6.4% stake in Luckin in a Could regulatory submitting.
A Luckin Espresso store in New York, US, on Tuesday, Dec. 16, 2025.
Christian Monterrosa | Bloomberg | Getty Photos
As soon as on the point of collapse after a $300 million fraud scandal that compelled it to delist from Nasdaq in 2020, the espresso chain has staged a pointy comeback. In 2022, Luckin introduced that it had accomplished the restructuring of its monetary debt and emerged from Chapter 15 chapter proceedings.
Temasek invested in Luckin solely after the corporate’s authorized and governance points have been resolved, Chia mentioned, dismissing questions on a relisting, saying Luckin’s precedence must be constructing a sturdy enterprise first.
“We determined to take a position as a result of we imagine that the shareholder and administration crew has been doing the best factor and on the best trajectory, so it was solely then that we invested,” Chia mentioned.
Temasek was additionally a part of a consortium with Centurium Capital and True Mild Capital, a personal fairness agency beneath Temasek, that took ANE personal in February.
The state investor’s internet portfolio worth surged to a report SG$518 billion ($401 billion) for the 12 months ended March 31, up SG$49 billion, marking its third straight annual enhance.
