According to Temasek Holdings Pte Ltd's Chief Investment Officer Rohit Sipahimalani, Singapore's state-owned investor, China's GDP would revive in the second half as the government supports the economy.
"We are approaching the trough, which is a completely different phase of the cycle," he explained to Bloomberg Television. "I believe that growth will accelerate in the second part of this year, compared to the United States and Europe."
Sipahimalani revealed Tuesday on the margins of the Milken Institute's Global Conference in Los Angeles that the firm's investment in ride hailing company Didi Global Inc. has not performed well in terms of stock price growth. However, he remains positive on the larger market and some of its technology businesses, pending government clarification.
Temasek managed S$381 billion in assets as of March 2021, including investments in China, which has been impacted by Covid-19 crackdowns and other macroeconomic concerns.
Over the last year, the business has progressively reduced its stakes in Chinese internet behemoths such as Alibaba Group Holding Ltd. and Didi, while also incurring losses in the country's online education sector.
The Securities and Exchange Commission of the United States is examining Didi's chaotic New York debut in 2021, when the ride-hailing firm raised US$4.4 billion only days before allegations of a Chinese data security inquiry crashed the stock.
Around 27% of Temasek's interests are in China, making it the company's largest region by far, surpassing Singapore. By July, the company is scheduled to discuss its fiscal year ending March 31, 2022.
"A lot of firms in the Chinese internet sphere have been hammered, and I believe that over the next few months, depending on the pronouncements, we will see more clarity in policy around them," he added. "There will be some extremely excellent investment possibilities in some of those circumstances."
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