Temasek and Wu Yibing: Continuously invest in the Chinese market. The investment portfolio in China has exceeded 400 billion yuan

21st Century Business Herald reporter Zhao Na reported

The annual financial report season, Temasek's performance is still stable.

As of the fiscal year of March 31, 2022, the net value of Temasek's global investment portfolio was S $ 403 billion (about 1890 billion yuan), an increase of S $ 22 billion over the previous fiscal year. In this fiscal year, Temasek's investment was S $ 61 billion, and the sales were S $ 37 billion.

Temasek has been looking at overseas since 2002, exploring new growth momentum in Asia in the transformation. Since then, the team has increased investment outside Asia to seize global innovation opportunities.

Outside Singapore, China is the largest investment destination of Temasek. As of March 31, 2022, Temasek's investment group in China was approximately 416 billion yuan, accounting for 22%of the global total investment.

It should also be noted that in the fiscal year as of March 31, 2022, Chinese assets held by Temasek accounted for about 5%of the previous fiscal year.

In July of this year, Wu Yibing, a joint president of global technology and consumer investment, the joint president of global corporate development, and the chairman of the Chinese region, was interviewed by the 21st Century Business Herald, and analyzed and responded to the investment in China.

"Temasel's investment in the Chinese market in the previous fiscal year was more than selling sales, and we did not reduce investment in China." Wu Yibing analyzed that the decrease in the proportion of assets in China in the financial report is mainly affected by the secondary market assets held by the secondary market assets. The market value changes, "Temantians attach great importance to the long -term trend, continue to be optimistic about the Chinese economy, and continue to invest in China in the future."

Follow the four major structural trends

From the latest annual report, you can see the investment strategies of Temasek in different industries and regions.

Temasek's investment portfolio is mainly equity, including listing and non -listed assets, and investment in private equity funds, thereby achieving higher long -term returns after risk adjustment.

From 2016, it focused on investing in the four long -term structural trends, namely digital process, sustainable life, new consumption and longer life. The three major industries in the investment portfolio in this fiscal year are financial services, transportation and industry, as well as telecommunications, media and technology (TMT).

The combination of structural trends with industry opportunities is Temasek's project decision -making consideration: According to financial report information, it is continuing to pay attention to companies in the fields of consumption, media and technology, life science and agricultural food and non -bank financial services. In 2022, investment in these industries accounted for 33%of the overall investment portfolio, which was significantly increased from 5%in 2011.

From the perspective of investment areas, China has always been one of the focus of investing in Temasek.

Specifically, 63%of Temasek's investment portfolio is distributed in Asia, of which Singapore (27%) and China (22%) are the two countries with the highest proportion. Based on the consideration of emerging trends and opportunities, Temasek has increased investment in the Americas (21%), as well as the European, Middle East and Africa (12%) markets.

In the Chinese market, Temasek continues to invest in the new economic field, focusing on new consumption models, sustainable development and innovative technologies. This includes warehousing and cold chain development and operators VX Logistics (VX Logistics), hydrogen fuel cell developer Shanghai Jiexin Technology, and digital marketing technology company Whale Technologies.

Wu Yibing said, "From a long -term investor, we focus on steady investment. We will be more cautious, but we will continue to invest in the trend of optimistic and optimistic companies."

Looking forward to the future, he told reporters that Temasek's investment in China mainly focuses on the combination of the four major structural trends and the characteristics of the Chinese market: one is the digital process, that is, the impact of digitalization on the industrial chain transformation; Investment opportunities in the field of life sciences and wealth management; third, new consumption in the future, typical representatives are the rise of Chinese local brands; fourth, sustainable life, the themes covered by new energy, agricultural technology, and traditional chemical economy are clean and transformed.

In the past two years, the consumer service industry has been greatly impacted by the epidemic. Liu Hui, executive general manager of Temasek China, added that the team is helping the excellent Chinese consumer company crossing cycle.

In the aftermath, in the process of internationalization of these companies, the Temasek team helped relevant investment companies explore the Southeast Asian market on the one hand, and on the other hand, it promoted the global market and Chinese companies in terms of consumer goods raw materials including plant protein.

There is no limit in investment

As a positive long -term investor, the investment principle of Temasek is centered on connotative value and risk return framework.

In general, Temasek is invested in enterprises at different stages of the commercial cycle, from start -ups to mature companies, as well as non -listed and listed companies. The team analyzes the connotation value of each investment from the bottom, and measures the expected return on investment in accordance with the capital cost of the risk.

其中在非上市资产部分，其投资组合价值从10年前的530亿新元增至2100亿新元，增加了约四倍；同期，淡马锡非上市投资组合年回报率超过10%，实现了非Liquidity premium is higher than the listing investment portfolio.

From the perspective of investment, Temasek is increasing investment in early stages.

Although startups account for less than 10%of Temasek's listed investment portfolio, more and more Temasek has appeared in the first -class market as early investors in the past five years. Wu Yibing told reporters, "We hope to find these future championship earlier, form a partnership with him earlier, and grow with him. This is the core logic of Temantians (early extra) investment."

The value of this strategy is that, through the investment of startups, the team can enhance the understanding of technology and business model innovation, to better evaluate future opportunities and market segments, and understand the potential potential of investment portfolios that may receive a larger scope of investment portfolio. influences.

Looking further, Temasek's shot for high -quality asset standards is not limited by whether the target company has been listed.

On June 27 this year, Cinda Bio (01801.HK) received Temasek to increase its holdings. The latter's shareholding ratio increased from 8.99%to 9.03%. Back to the past, Temasek became the investor of Cinda Bio in 2015; when Cinda Bio was listed on the Hong Kong Stock Exchange in 2018, Temasek also appeared in the list of cornerstone investors.

It can be seen that for high -quality assets, Temasek will adjust the position in a timely manner, but the core strategy is still held for a long time.

In other words, Temasek has real -time updates and judgments on the connotation value of each target. If the project valuation is attractive in the connotation value assessment, the team will invest.

Practice zero carbon vision

Another highlight of Temasek's financial report this year is the explanation of the concept of sustainable development, especially zero carbon vision.

According to the disclosed information, Temasek achieved the company's carbon neutral and targets three years ago and maintained to this day. The company plans to comprehensively reduce the net carbon emissions of the investment portfolio to half of the carbon emissions level in 2010, and strive to achieve net zero carbon emissions of the investment portfolio by 2050.

To achieve this goal, Temasek has increased its efforts to encourage investment portfolio companies to decapanar, and continue to invest in business fields with lower carbon strength. On the other hand, carbon costs are included in investment decisions, and long -term rewards for employees are linked to the target of carbon emission reduction in the next 10 years.

The reporter learned that Temasek is increasing investment in the fields that help alleviate climate change, empowerment of negative carbon emissions technology solutions, and encourage enterprises to work hard to decarcar.

Not only that, in June 2022, it also established Genzero, which focuses on exploring solutions, focused on technical solutions, naturally -based solutions and carbon ecosystem development.

According to reports, Genzero can not only invest in early innovative technology projects, but also invest in large -scale projects. Its core mission is to "truly generate carbon credit to help the group can achieve carbon neutrality."

In addition to the self -built GENZERO, more zero -carbon processes are still being promoted through cooperation. Specifically, including Decarbonization Parts, which was established with Berlaide, and the Star Fair Bank, Singapore Exchange and Standard Chartered Bank jointly established CLIMATE IMPACT X, a high -quality carbon credit global trading market, is the Brookfield Global Transition Fund as the founding LP.

In terms of widespread influence investment, Temasek also achieved partnership with ABC IMPACT and Leapfrog Investments to help build a diversified influential fund combination.

Wu Yibing said, "Our goal is to promote the entire world economy to transform to green, the more people who come to participate. We hope to attract more funds, talents, technology, and capabilities to create a vision of zero carbon."

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