Temasek sells off Chinese tech stocks amid crackdown by Beijing

Temasek said in September that it was holding off on further Chinese tech platform investments. ST PHOTO: KUA CHEE SIONG

SINGAPORE (BLOOMBERG) - Singapore's investment company Temasek sold shares of US-listed Chinese technology companies from Alibaba Group Holding to Didi Global to online education providers amid regulatory crackdowns.

Temasek cut 16 per cent of its stake in e-commerce giant Alibaba and 11 per cent of its shares in ride-hailing service Didi, according to a 13F filing for the three months ended Sept 30. It exited Chinese search engine operator Baidu, TAL Education Group, New Oriental Education & Technology Group, and job service provider Kanzhun.

This comes as global investors weigh whether China's once-booming Internet market remains investable after the government introduced rules that weakened business prospects.

Temasek, which managed assets worth $381 billion as at March, told Bloomberg in September that it was holding off on further Chinese tech platform investments as it sought more certainty on the fallout from the regulatory tightening.

At the time, chief investment strategist Rohit Sipahimalani said Temasek was "fairly comfortable with the positions we hold". Temasek rebalances its portfolio from time to time in the usual course of business, a company representative said.

Temasek's disclosed holdings fell 4.5 per cent in value in the third quarter to US$28.1 billion (S$38 billion), according to a Bloomberg analysis of the filing. The Standard & Poor's 500 index advanced 8.2 per cent.

It is unclear if some of the transactions represent US-listed shares being exchanged for their Hong Kong-traded equivalents at dual-listed companies like Alibaba - something Temasek has done in the past. Its sovereign peer GIC told Bloomberg last month that it was weighing portfolio changes in response to China's wide-ranging curbs.

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