Temasek sells off Chinese tech stocks amid Beijing crackdown

Singapore's investment company Temasek sold shares of United States-listed Chinese technology companies including Alibaba Group Holding and Didi Global as well as 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 are weighing 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.

Its 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 firms like Alibaba - something Temasek has done in the past.

Meanwhile, Singapore sovereign wealth fund GIC told Bloomberg last month that it was weighing portfolio changes in response to China's wide-ranging curbs.

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A version of this article appeared in the print edition of The Straits Times on November 17, 2021, with the headline 'Temasek sells off Chinese tech stocks amid Beijing crackdown'. Subscribe