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Singapore Temasek wants to work with Western banks

5 December 2007

Singapore state investment fund Temasek Holdings recently actively is interested in the large western companies. In Temasek economists’ opinion, investment in these companies can make huge profit - especially now, when they became accessible because of cheaper dollar.
With the purpose of attraction of the capital necessary for such transactions, Singapore investing fund has already partially sold its share in Bank of China, China Construction Bank and COSCO therefore has gained nearby 1,1 billion dollars.Temasek has received good profits on sale of the Chinese shares, and I consider, that it was very correct decision. Analysts consider, that now investing fund will try to buy a part of large financial corporations’ shares, such as Barclays (in which it already owns 2,1 %) or American banks. They also mark that in the nearest future Temasek will operate especially actively. Its basic purpose relies in close cooperation with banks and financial sectors, and for this purpose it can be even united with others Chinese investing funds.
Such transactions became especially favorable recently, in many respects owing to falling of dollar - about 11 % in relation to euro and about 7 % in relation to yen. For example, representatives of Lehman Brothers mark that easing of the American currency - is one of few reasons why investing funds aspire to buy shares of large American corporations.
Some state investment funds already have taken advantage of the developed situation. Chinese CITIC Securities has declared about $1-milliard shares’ exchange with Bear Stearns. And the large state investment fund from Abu-Dhabi Abu Dhabi Investment Authority (ADIA) has recently informed on purchase of 4,9 % shares of American bank Citigroup for 7,5 billion dollars.

 




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