Temasek bets on adjusting its layout in the artificial intelligence track, and its position in China increased by US$7.7 billion, the largest annual increase in five years
Temasek's investment exposure to China increased by approximately S$10 billion (equivalent to US$7.7 billion) in the past year, the highest annual net investment in China since 2021; Temasek’s cumulative new investment in China in the past ten years is approximately S$24 billion; Temasek has adjusted the focus of its investment portfolio in China and shifted to hard technology tracks such as AI hardware, computing infrastructure, robotics, biomedicine, and energy transformation. In the last fiscal year ended March 31, Singapore’s sovereign investment institution Temasek Holdings increased its investment exposure to China by S$10 billion (about US$7.7 billion), the largest annual increase in the past five years. This state-owned investment institution is relying on a new growth cycle driven by artificial intelligence and cutting-edge technology to reshape its asset layout in China. Temasek CEO Di Lan said at the annual results conference held on Wednesday: "We are seeing a rebound in the Chinese market." He also mentioned that the company's cumulative new investment in China in the past ten years has reached S$24 billion. Temasek disclosed that due to the multiple downward pressures on China’s capital market from 2021 to 2024, the five-year total shareholder return for this fiscal year was only 4.6%; the recovery in market valuations last year also promoted the simultaneous expansion of its positions in China. From the perspective of position proportion, Temasek's asset allocation ratio in China has dropped to 17% from 29% in 2020, but China is still its third largest investment market, second only to local Singapore (27%) and the American market (26%, an increase from 24% in the previous year). At the level of industry allocation in China, Temasek gradually reduced its holdings in the consumer and real estate sectors that it had heavily invested in in the early years, and shifted funds to the "hard technology" areas it defined, including AI hardware and computing infrastructure, robotics, biomedicine, and energy transformation tracks. Temasek Global Investors CEO Chia Songhui said: "China's economy has bid farewell to the stage of rapid growth and entered a stage of mature development. We need to be more selective in our investments and build an asset portfolio that suits the current economic environment." In terms of consumption, Temasek is more optimistic about experiential consumption and local consumer brands with independent innovation capabilities, rather than overseas brands. However, the agency also pointed out that the domestic consumption recovery is uneven and has not yet formed a comprehensive recovery, and the possibility of further loose stimulus policies in the short term is low. New investment targets this fiscal year include China’s Luckin Coffee and logistics company Jitu; America’s Anthropic and OpenAI; and Europe’s Ermenegildo Zegna Group. Previously, Temasek indirectly held Ruixing shares through private equity institution BOC Capital. Regulatory documents in May this year showed that Temasek directly held 6.4% of Ruixing shares. On Tuesday, December 16, 2025, a Luckin store in New York, USA. According to people familiar with the matter, China's Luckin Coffee is considering acquiring Nestlé's Blue Bottle Coffee to enhance its brand influence and lay out the high-end coffee track. In 2020, Luckin was involved in a $300 million financial fraud scandal. Delisted and once on the verge of bankruptcy, it has now achieved a strong recovery. In 2022, Luckin completed its debt restructuring and ended the Chapter 15 cross-border bankruptcy proceedings of the U.S. Bankruptcy Code. In response to relevant questions, Xie Songhui said that Temasek completed the investment after Ruixing completely resolved the legal and corporate governance risks; regarding the rumors of Ruixing's resumption of listing, he said that the company's current priority is to build a stable business with sustainable operations. "We chose to invest because we recognized that the company's shareholders and management had made rectifications and the development path was improving, so we entered the game after the risks were cleared." In February this year, Temasek formed a consortium with BOC Capital and its private equity platform True Light Capital to complete the privatization acquisition of Jitu Express. As of the end of the fiscal year on March 31, the net value of Temasek's investment portfolio climbed sharply to a record high of S$518 billion (approximately US$401 billion), achieving three consecutive years of net value increases.