Temasek invests in fast-growing sectors in China

Temasek Holdings, a Singaporean investment firm, has been looking toward investment in China's fast growth sector, Xinhua reported.

According to the company's latest financial report, Temasek Holdings has been moving its investments in China, from the financial service sector to fast growth sectors such as residential real estate and renewable energies from last year on.

The 2006 financial report showed Temasek Holdings investing about US$1.1 billion into China in FY2006, focusing mainly in housing projects, consumer products, energy and resources sectors as well as the IPO of the Bank of China<601988><3988>.

The company was also shown to have invested US$50 million in Xinyu Hengdeli<3389>, a large Chinese luxury watch retail chain, Yingli Green Energy, China's leading solar equipment producer and in Country Garden, one of the country's largest property developers, Xinhua said.

"Rapid urbanization and fast rising disposable incomes of Chinese people are providing good opportunities for Temasek to invest in the real estate sector and consumer and lifestyle sectors," the media agency quoted Frank Tang, managing director and head of China investment for Temasek.

Temasek Holdings had increased its stake in CITIC Resources Holdings Ltd.<1205> to 11% in 2006, making it the second-largest shareholder.

"The Chinese market has always been an important part of Temasek's overseas investment strategy," Frank Tang told Xinhua.