Temasek Holdings, the sovereign fund of Singapore, is likely to sell its 2.5 percent stake in China Minsheng Banking Corp Ltd, local media reported.
Dong Wenbiao, chairman of the bank, said the lender is seeking new strategic investors and has been talking with several foreign banks during the 2nd session of the parliament's annual meeting. This triggered speculation that Singapore-based Temasek will quit the bank, Wealth Management Weekly reported on Monday.
Temasek has suffered a loss of US$39 billion from investing in financial companies since the global financial crisis hit last year. By the end of 2007, its total investment in financial firms was US$90 billion. It is widely expected that Temasek will have to cut its investment in finance in order to survive the crisis.
Both Temasek and Minsheng declined to comment. But the sale is likely to be disclosed when the bank releases its annual results on April 22.
(China Daily March 9, 2009)
