Temasek Holdings, a Singapore-based investment house is in talks with BOC International, the investment banking arm of Bank of China, to launch a $1 billion to $2 billion investment fund. It is intended to cater to the needs of the fast-growing infrastructure projects across China – reported Reuters.
China had unveiled a massive economic stimulus package late last year in response to the global financial catastrophe, with special focus on infrastructure projects such as bridges, airports, ports and railways in major Chinese cities. The dragon nation is encouraging banks, insurers and private capital to participate in infrastructure investments.
On the other hand, Temasek sold its shares in Bank of America and Barclays, and as a result suffered a loss of over $4 billion. Its infrastructure, industrial and engineering assets accounted for only 6% of its portfolio, as compared to 40% in financials at the end of March 2008. It is trying to channel its investments to non-financial sectors, with focus on Asia.
