Temasek loads up on JD.com, Saudi PIF adds PDD shares in their bet on China’s consumption recovery, even as other foreign investors flee
- Saudi Arabia’s Public Investment Fund (PIF) boosted its stake in PDD Holdings in one the biggest adjustment to its US$36.5 billion equity portfolio last quarter
- Singapore’s Temasek Holdings bumped up its holdings in JD.com and KraneShares CSI China internet ETF
Two of the world’s biggest state owned investors have poured money into China’s consumption stocks during the third quarter, raising their bets on transformation of the world’s second largest economy at a time when Western investors are retreating over growth concerns and amid an intensifying property crisis.
Saudi Arabia’s Public Investment Fund (PIF) boosted its stake in PDD Holdings by 45 per cent to 1.7 million shares in one the biggest adjustment to its US$36.5 billion equity portfolio last quarter, its latest 13F filing with the Securities and Exchange Commission showed.
Meanwhile, Singapore’s Temasek Holdings bumped up its holdings in JD.com by 11 per cent to 3.9 million share and increased its long position in KraneShares CSI China internet ETF by 45 per cent. The ETF gives exposure to companies benefiting from increasing domestic consumption by China’s growing middle class. It left its positions unchanged in six other Chinese companies including Alibaba and Yum China Holdings, according to its 13F filing.
“Consumption is a solid China story compared with other sectors,” said Gary Ng, senior economist at Natixis Corporate and Investment Bank. The recovery has remained steadfast this year and the outlook for consumer-focused companies is still promising, he added.
