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Temasek buys shares in CCB
Source: Bloomberg News |
September 6, 2011, Tuesday
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Print Edition
Print Edition
TEMASEK Holdings Pte, Singapore's state-owned investment company, bought shares in China Construction Bank for as much as HK$21.7 billion (US$2.8 billion) about eight weeks after paring its holdings.
Temasek purchased 4.4 billion shares of the Chinese lender, paying as much as HK$4.94 a share and increasing its stake to 8.1 percent from 6.27 percent, according to a filing to the Hong Kong stock exchange yesterday. Bank of America Corp said on August 29 that it agreed to sell about half its stake in the Beijing-based lender for US$8.3 billion to bolster capital.
The purchase rebuilds Temasek's stake in CCB at a cheaper price after the state-investment company sold HK$9.4 billion of stock at HK$6.26 a share in July. Temasek said after the sale that it remained "bullish" on CCB, which has fell 14 percent in Hong Kong trading since the end of June on concern the nation's record US$2.7 trillion lending boom will lead to a wave of defaults.
The purchase "reflects a long-term confidence in the Chinese economy and Chinese banking sector," Eugene Tan, an assistant professor of law at the Singapore Management University, said by telephone. "Given the volatility of the markets, investors like Temasek may be forced to adopt such strategies to enable them to continue toward their longer-term objectives of making good returns."
Temasek, which in July sold part of its stakes in CCB and Bank of China for US$3.6 billion, said at that time that it's still seeking deals in China, the company's largest investment destination.
The fund's units had sold 1.5 billion shares in CCB for HK$6.26 a share, and 5.19 billion shares of BOC at HK$3.63 each.
The sales were part of its "portfolio rebalancing" and the world's fastest-growing major economy accounts for more than 20 percent of its S$193 billion (US$160 billion) portfolio, Temasek said.
It bought 97.1 million shares of BOC on August 22, boosting its stake to 6.91 billion shares, said a filing to the Hong Kong stock exchange last week. Temasek paid an average HK$2.97 a share, with a maximum price of HK$3, it said.
Temasek held 16.9 billion shares in CCB as of December 31, giving it 7.03 percent of the Hong Kong-listed shares and 6.76 percent of the total, according to the Chinese lender's annual report. Its Fullerton Financial unit held 14.1 billion shares, or 5.65 percent of the total.
Financial services companies made up 36 percent of its portfolio as of March. It's the biggest investor in banks including Standard Chartered Plc and DBS Group Holdings Ltd and holds stakes in India's ICICI Bank Ltd and PT Bank Danamon Indonesia.
Temasek purchased 4.4 billion shares of the Chinese lender, paying as much as HK$4.94 a share and increasing its stake to 8.1 percent from 6.27 percent, according to a filing to the Hong Kong stock exchange yesterday. Bank of America Corp said on August 29 that it agreed to sell about half its stake in the Beijing-based lender for US$8.3 billion to bolster capital.
The purchase rebuilds Temasek's stake in CCB at a cheaper price after the state-investment company sold HK$9.4 billion of stock at HK$6.26 a share in July. Temasek said after the sale that it remained "bullish" on CCB, which has fell 14 percent in Hong Kong trading since the end of June on concern the nation's record US$2.7 trillion lending boom will lead to a wave of defaults.
The purchase "reflects a long-term confidence in the Chinese economy and Chinese banking sector," Eugene Tan, an assistant professor of law at the Singapore Management University, said by telephone. "Given the volatility of the markets, investors like Temasek may be forced to adopt such strategies to enable them to continue toward their longer-term objectives of making good returns."
Temasek, which in July sold part of its stakes in CCB and Bank of China for US$3.6 billion, said at that time that it's still seeking deals in China, the company's largest investment destination.
The fund's units had sold 1.5 billion shares in CCB for HK$6.26 a share, and 5.19 billion shares of BOC at HK$3.63 each.
The sales were part of its "portfolio rebalancing" and the world's fastest-growing major economy accounts for more than 20 percent of its S$193 billion (US$160 billion) portfolio, Temasek said.
It bought 97.1 million shares of BOC on August 22, boosting its stake to 6.91 billion shares, said a filing to the Hong Kong stock exchange last week. Temasek paid an average HK$2.97 a share, with a maximum price of HK$3, it said.
Temasek held 16.9 billion shares in CCB as of December 31, giving it 7.03 percent of the Hong Kong-listed shares and 6.76 percent of the total, according to the Chinese lender's annual report. Its Fullerton Financial unit held 14.1 billion shares, or 5.65 percent of the total.
Financial services companies made up 36 percent of its portfolio as of March. It's the biggest investor in banks including Standard Chartered Plc and DBS Group Holdings Ltd and holds stakes in India's ICICI Bank Ltd and PT Bank Danamon Indonesia.
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