Alibaba’s key backer Temasek trims stake, adds rivals JD.com and Pinduoduo in portfolio tweak
- Singapore’s state investment firm trimmed Alibaba stake by US$361 million last quarter, bought more shares in Pinduoduo and created a new position in JD.com
- Outside China, Temasek added shares of the stock-trading platform Robinhood, while selling down Uber Technologies and Coinbase Global
The Singapore state investment firm cut its holding in Alibaba’s American depositary shares (ADS) by US$361.6 million to US$1.08 billion as the Hangzhou-based company’s value shrank by US$114 billion that quarter over concerns about regulatory crackdown in mainland China.
Alibaba’s ADS slumped 20 per cent in the fourth quarter to as low as US$108.70 on December 3, a level not seen since April 2017. In Hong Kong, its ordinary shares hit an all-time low of HK$109.20 on December 30.
Temasek bet on Chinese education stocks, Didi Global before July sell-off
While China’s efforts to address the power of internet platforms, data privacy and income inequality are common around the world, the way that is being implemented in China “is a little more blunt and quick, and that is why it has created a lot of shocks out there,” according to Rohit Sipahimalani, Temasek’s chief investment strategist.
Temasek declined to comment on specific trades, changes are part of “usual course of business” to rebalance its portfolio from time to time, it said in an email reply to the Post.
Temasek had about 27 per cent of its assets invested in China as of last March. China remains Temasek’s largest allocation by geography outside its home base in Singapore.
Outside the mainland China markets, Temasek bought a small stake in Robinhood Markets and exited from Uber Technologies and the cryptocurrency exchange platform Coinbase Global, among other notable tweaks to its bets last quarter.
The changes came as louder bullish calls for Chinese stocks emerged in late October, with analysts from UBS to BlackRock calling for stronger monetary easing measures to counter an economic slowdown.
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“Additional regulatory drags are unlikely this year, as implementation of existing rules has become the focal point, rather than introducing aggressive new measures,” Morgan Stanley said in a note to clients last week, adding that Beijing has adopted a more supportive tone on internet giants.
Temasek’s 13F filing revealed at least 10 Chinese companies in its portfolio, which included a higher stake in pharmaceutical firm Beigene and a new position in I-Mab Biopharma.