Temasek says Alibaba remains key part of its portfolio

SINGAPORE — Temasek Holdings, the Singapore state-owned investment giant which pared its stake in Alibaba Group Holding in the third quarter, said yesterday that China’s biggest online retailer remains an essential part of its portfolio.

Temasek sold 14.5 million American depositary receipts (ADRs) in the quarter, leaving it with 39.6 million at the end of September valued at US$4.2 billion (S$5.9 billion), according to a filing with the United States Securities and Exchange Commission on Monday. Temasek had added 6.5 million ADRs in the company in the June quarter, according to an earlier filing.

“These changes reflect the reporting of normal portfolio rebalancing we undertake from time to time, and are mainly related to more liquid stocks, holdings of which may vary with market movements,” Temasek spokesman Stephen Forshaw said. “We remain significantly invested in Alibaba as an important holding in our portfolio.”

Temasek, which in July reported the first decline in its portfolio in seven years after last year’s market rout, is reshaping its holdings and bracing for lower market returns. The value of assets fell 9 per cent to S$242 billion in the fiscal year ended March 31.

Alibaba, which debuted on the New York Stock Exchange in 2014, recorded the world’s largest initial public offering of US$25 billion. Temasek was an early investor in Alibaba and it remains the eighth-largest holding in the fund’s portfolio, according to Bloomberg data. BLOOMBERG