Temasek’s China investments continue to suffer while new bets on chip makers TSMC, Nvidia unrewarded
- Holdings in about 10 Chinese companies suffered US$532 million erosion in value during the first quarter, according to its 13F filing on late Monday
- Temasek made new purchases in Taiwan Semiconductor Manufacturing Company and Nvidia; raised stake in Sea Ltd while stock slumped
It incurred at least US$532 million of erosion in the value of American depositary shares in 10 Chinese companies during the first three months of the year, according to its 13F report late Monday. Overall, the value of its portfolio declined by about US$4 billion from the end of 2021.
The struggle underscores the crisis caused by China’s hardline zero-Covid strategy, which has led to a full lockdown in Shanghai and 40 other municipalities and provinces responsible for about 30 per cent of national output.
Investors are worried that the market has become “uninvestable” amid factory shutdowns, supply-chain disruptions and delisting risks. An aggressive US policy tightening has also fanned a stock sell-off this year.
“[China] is one of the fastest-growing large economies,” Temasek’s chief investment officer Rohit Sipahimalani said in a Bloomberg TV interview on May 4. “You cannot not be invested in China. There is a clear intention from the government to revive growth.”
Temasek declined to comment on an email request from the Post.
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The MSCI China Index, which tracks 744 Chinese firms, slid 14 per cent last quarter, erasing US$1.4 trillion in market value in one of the most volatile trading months when prices swung by more than 10 per cent on some days. The Nasdaq Golden Dragon China Index slumped over 21 per cent in the same period.
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Elsewhere, the Singapore state investor made new bets in the chip sector amid a global supply shortage, picking up shares in semiconductor giants TSMC and Nvidia at US$104.26 and US$272.86 each on average, according to the 13F filing. The stocks recently traded at about US$90 and US$173, respectively.
Among Singapore-based targets, Temasek retained its stake in Grab Holdings which shrank by US$36 million in market value. Its holding in Sea Ltd fell by US$81 million despite having boosted its ownership by about 48 per cent.
In the first quarter, Temasek listed holdings in 96 global companies including Amazon.com, Starbucks and Visa with a combined market value of US$23.7 billion on March 31, according to its filing. The firm’s portfolio of 95 companies was pegged at US$27.7 billion on December 31.
