Temasek says China liquidity crunch won't hit its bank holdings
SINGAPORE, July 4
SINGAPORE, July 4 (Reuters) - Singapore state investor Temasek Holdings Pte Ltd said it does not expect last month's liquidity crunch in Chinese banks to have an impact on its banking investments in the world's second-largest economy.
"There is sufficient liquidity in the system, so we are not concerned abut a liquidity crunch over a prolonged period," Chia Song Hwee, head of Temasek's investment group and co-head of China, told a news conference on Thursday.
"The banks that we have invested in, they are actually very well capitalised."
Temasek counts China Construction Bank as its second-largest investment with an 8 percent stake in its portfolio. It has also invested about $2.4 billion in Industrial and Commercial Bank of China since 2012 alone.
Chinese banks suffered an unprecedented cash crunch last month after the Chinese central bank allowed rates to shoot to record highs to punish banks for making risky loans and to force them to curtail dodgy lending.
- Air strike kills 15 civilians in Yemen by mistake: officials
- North Korea executes leader's powerful uncle in rare public purge |
- Twitter backtracks on block feature after users revolt
- Pope attacks mega-salaries and wealth gap in peace message
- Insight: In Yemen, al Qaeda gains sympathy amid U.S. drone strikes