atans1

China got point that Temask model “undesirable”?

In Financial competency, GIC, Temasek on 25/07/2017 at 4:51 pm

FT reports that China has tot about and now rejects the S’pore model for state-owned enterprise reform. FT says, China “turns away from Temasek-style effort to insulate state companies from politics.”

Seems the State Assets Supervision and Administration Commission thinks that

promoting the Temasek model would reinforce an undesirable trend in China’s economy towards “fake” investment that generates profits by shifting money between existing assets without generating new economic activity, Caixin reported.

What can I say?

— Given that according to the Bocconi University, Sovereign Investment Lab, our  GIC and Temasek together carried out last year 62 deals globally worth US$17.9bn, accounting for 39% of total deals and 45% of investment value.

— But as Chris K points out GIC’s and Temasek’s risk adjusted returns are in line with other SWFs.

So does the hyperactivity benefit anyone except the counterparties anf our SWFs’ advisers?

What do u think?

 

 

 

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