Home News China Focus

GIC reduces private investments in China after tech crackdown and 'property market turmoil', says FT

Felicia Tan
Felicia Tan2/14/2023 02:38 PM GMT+08  • 2 min read
GIC reduces private investments in China after tech crackdown and 'property market turmoil', says FT
GIC CEO Lim Chow Kiat. Photo: Bloomberg
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

GIC is said to be scaling back its investment commitments to China-focused private equity, according to a Feb 14 article on Financial Times.

Singapore's sovereign wealth fund, which is one of the world’s largest investors in private equity funds, has been doing so over the past year, according to the broadsheet’s sources.

In addition, GIC has also “significantly” reduced its pace of direct investments in private Chinese firms.

According to some of Financial Times’ sources, some of GIC’s more senior figures have recently become more cautious about putting money into the country despite GIC being an “early backer” of China’s economic growth story. That said, the fund was negatively affected by the recent property market crisis in the country and Beijing’s crackdown on its tech industry; GIC is invested in the Chinese property sector and owns a stake in Ant Group, whose initial public offering (IPO) was stopped in 2020.

According to the same sources, GIC was “burnt bad” by the move on Ant and has become “wary” of other unexpected moves from the Chinese government.

The sources add that the reticence comes on the back of the growing geopolitical tensions between the US and China. Chinese president Xi Jinping’s drive for “common prosperity” could also have unintended negative effects.

See also: Business red tape in China gets a trimming

According to sovereign wealth fund tracker Global SWF, GIC remained the most active state-owned investor for the fourth year running in 2022. During the year, GIC deployed US$34.5 billion ($45.81 billion) in 110 deals, nearly twice as many deals as it brokered in 2020.

Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.