Err the SDP and its new media allies will spin this as: “Profitable investments — requires more money. Waz happening Temasek?”
As you will be aware Temasek has stakes in two Chinese banks; 4% in Bank of China, and 6% of China Construction Bank Corporation. These stakes are profitable.
But Temasek would need to invest more if it wants to maintain the size of its stake because they need a lot more capital.
China’s four biggest publicly traded banks (Industrial and Commercial Bank of China, Bank of Communications , Bank of China, China Construction Bank ) could face a combined capital shortfall of at least Rmb480bn (US$70bn) over the next five years, according to the president of Industrial and Commercial Bank of China, reports the FT.
All these banks have announced plans in the past month to raise fresh capital after orders to lend liberally last year. But the total amounts they plan to raise fall far short of the five-year estimate of Yang Kaisheng, ICBC president.
Poor Temasek: nothing satisfies critics gunning for you.