Temasek buys large stakes in Chinese technology and consumer goods companies

Absrtact: August 15, during the second quarter of this year, Temasek, the Singapore sovereign wealth fund, acquired a large stake in the U.S.-listed Chinese technology and consumer goods company, including Jingdong (NASDAQ Securities Code: JD) and Cheetah Movement (NYSE Stock Exchange)

Singapore's sovereign wealth fund Temasek acquired a large stake in U.S.-listed Chinese technology and consumer goods companies in the second quarter of this year, August 15, including the BoE (NASDAQ Securities Code: JD) and the Cheetah Movement (NYSE: CMCM) company. Temasek's move is aimed at acquiring a diversified business outside the banking sector in Asia's largest economy.

According to the Ma Sibon, which was submitted to the Securities and Exchange Commission in Wednesday, the company bought 602,139 U.S. depository receipts in Beijing, directly or through its subsidiaries, which are worth about $17.2 million. In addition, Temasek has acquired 603,764 U.S. depository receipts from Cheetah Mobile, which is worth about $12.8 million. Both Jingdong and Cheetahs were listed in the U.S. this May. BEIJING-East and Cheetah movements were listed in the United States this May.

These deals will help Temasek expand its presence in the Chinese market, thereby easing its reliance on the National Bank of Singapore. In addition to the move of the Jingdong and Cheetah, Temasek also bought a stake in the company last year on the Chinese market for other consumer-related companies.

"As far as the region is concerned, Temasek is increasing its exposure to the Chinese market, and Temasek is acquiring consumer-related assets on the investment theme," said Song Seng Wun, an economist at the CIMB Research Unit in Singapore Song. These assets will help Temasek expand beyond the country's financial assets. ”

In May this year, Jingdong held an IPO in the US stock market (IPO), selling 93.7 million U.S. depository receipts through IPOs and financing 1.78 billion of billions of dollars. The company is currently controlled by Liu, Daiju East, China's sixth-largest millionaire, with a net worth of about $8.8 billion trillion.

Software maker Cheetah Mobile, backed by companies such as Kingsoft, made an IPO in the US stock market on May 8 this year, raising $168 million trillion. Temasek held 1 million shares in Cheetah Mobile after the May IPO, according to data from Bloomberg. According to the Xi Zhou, the number of shares held by Temasek in the cheetah movement has increased to 603,764 shares by the end of June this year. By the end of June this year, the Cheetah Mobile share price has risen by 52%.

Temasek currently holds stakes in several Chinese banks, including ICBC, CCB and BOC, which are worth about $20 billion trillion, according to Bloomberg data. Temasek, meanwhile, is the largest foreign investor in China's big banks.

Other investment transactions:

Temasek agreed in March this year to acquire about 25% per cent of Watson's retail division, which costs about $5.7 billion (about 44 billion Hong Kong dollars).

In addition, Temasek has invested in China's largest e-commerce operator Alibaba Group.

Temasek's investment in other U.S.-listed companies in the second quarter of this year also included the acquisition of some 150 shares of Sabre, a travel software and data company, which sabre the IPO this April. Temasek, meanwhile, has dumped its 5.8 million-share stake in the US fertiliser company, Mosaic Co, and has increased its holdings of 580,924 shares in the company's BioMarin Pharmaceutical, the drug maker.

"Since we need to balance our business portfolio and to find investment opportunities in some companies that fit our investment theme, we have also adjusted our shareholding structure in some companies," Stephen Fossio, a spokesman for Temasek, said in an e-mail statement. ”

Temasek, which is still under the control of the Singapore Treasury, is the Nineth-largest national investment fund, with assets valued at about $177 billion trillion, according to the sovereign Wealth Centre's website. (Yue Tong)