In addition, GIC has also “significantly” reduced its pace of direct investments in private Chinese firms.
According to some of Financial Times’ sources, some of GIC’s more senior figures have recently become more cautious about putting money into the country despite GIC being an “early backer” of China’s economic growth story. That said, the fund was negatively affected by the recent property market crisis in the country and Beijing’s crackdown on its tech industry; GIC is invested in the Chinese property sector and owns a stake in Ant Group, whose initial public offering (IPO) was stopped in 2020.
According to the same sources, GIC was “burnt bad” by the move on Ant and has become “wary” of other unexpected moves from the Chinese government.
The sources add that the reticence comes on the back of the growing geopolitical tensions between the US and China. Chinese president Xi Jinping’s drive for “common prosperity” could also have unintended negative effects.
See also: Chinese banks recapitalise in the great global rebalancing
According to sovereign wealth fund tracker Global SWF, GIC remained the most active state-owned investor for the fourth year running in 2022. During the year, GIC deployed US$34.5 billion ($45.81 billion) in 110 deals, nearly twice as many deals as it brokered in 2020.
