Temasek trims stake in ICBC, says remains confident in Chinese banks

Temasek said it remained confident in Chinese banks.
Temasek said it remained confident in Chinese banks.PHOTO: ST FILE

SINGAPORE (REUTERS) - Singapore state investor Temasek Holdings pared its stake in Industrial and Commercial Bank of China (ICBC) to 8.43 per cent from 9.12 per cent, as part of a rebalancing of its portfolio in China's largest bank.

In a statement on Friday, Temasek said it remained confident in Chinese banks.

"As a long term investor, it is usual for Temasek to rebalance its portfolio from time to time," the investor said. "We remain confident in China and its banking sector, and continue to hold significant positions in Chinese banks."

A filing made by Temasek to the Hong Kong bourse showed that Temasek had sold 600 million H-shares of the bank at an off-exchange average price of HK$5.023 (90 Singapore cents).

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Temasek, one of the world's biggest state investors, has a large exposure to financials and owns stakes in Chinese banks and Standard Chartered.

Earlier this week, Singapore sovereign wealth fund GIC, which invested in UBS Group to support it during the 2008/09 global financial crisis, cut its stake in the Swiss bank at a loss, partly because of changes in the lender's strategy and business. However, it said it would retain its profitable stake in Citigroup.