While most Western institutional investors have spent the last two years tiptoeing away from Chinese markets, Singapore’s Temasek has been walking in the opposite direction. With a checkbook.
The state-owned investment giant added roughly $7.7 billion in direct China investments during the fiscal year ending March 31, 2025, marking the largest increase in its China exposure in five years. The move helped push Temasek’s total net portfolio value to a record S$434 billion, approximately $324 billion, an increase of S$45 billion year-over-year.
The AI thesis behind the China bet
Direct holdings in China’s AI sector rose by roughly SGD 4 billion, about $3.1 billion, during the last fiscal year alone. That’s a significant chunk of the overall China increase, suggesting that when Temasek looks at the Middle Kingdom, it’s seeing server racks and large language models, not real estate or consumer spending.
The fund has set what can only be described as an ambitious target: tripling its total AI investments from approximately $25 billion to around $75 billion by 2030.
