Temasek Holdings raised its underlying exposure to China by S$10bn ($7.7bn) by the end of the 2025 financial year, its biggest annual increase in five years.
The Singapore state investment company said the rise brought the growth in its China exposure over the past decade to about S$24bn ($18.5bn).
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Chief executive officer Dilhan Pillay said the investor had seen “a rebound in China”, with the portfolio becoming more concentrated on AI-related hardware and infrastructure, robotics, biotechnology and the energy transition.
Pillay said: “As our portfolio has evolved, we have refreshed our organisational structure to sharpen focus across entities with differentiated strategies, outcomes, and skill sets.
“At the same time, we continue to operate as OneTemasek, united in purpose, disciplined in execution, and focused on sensing shifts early, adapting nimbly, and thriving as we deliver good sustainable returns over the long term,” he added.
Temasek reported a net portfolio value of S$518bn ($400.3bn) as of 31 March 2026, an increase of S$49bn ($37.9bn) from a year earlier.
One-year total shareholder return (TSR) was 10.5%, while ten-year TSR was 7.1% and 20-year TSR was 6.8%.
During the financial year, Temasek invested S$51bn ($39.4bn) and divested S$31bn ($24bn), leaving net investments of S$20bn ($15.5bn).
The company said the increase in net portfolio value was driven mainly by the strong performance of listed Singapore-based portfolio companies and gains from key divestments.
It added that geopolitical events in the Middle East reduced net portfolio value by around 2% in the final month of the financial year.
Temasek said AI would continue to be a central investment focus, with AI-related assets making up 6% of portfolio value.
It said it planned to raise that share to as much as 15% by 2031 through investments spanning energy and data centres, semiconductors, cloud services providers, foundation models, and AI applications and software infrastructure.
The company also set out plans to increase exposure to core-plus infrastructure from 1% to 5% of portfolio value by 2031, with a focus on grid modernisation, renewable and nuclear energy, energy storage and decarbonisation technologies.
It also said it would expand its private credit portfolio from 2% to 5% over the same period.
Under an organisational restructuring that took effect on 1 April 2026, Temasek created three wholly owned entities: Temasek Singapore, Temasek Global Investments and Temasek Partnership Solutions, with support from Temasek International.
Temasek also said the reporting year marked the completion of its transition to mark-to-market valuation for unlisted investments, aligning its reporting methodology with global peers and providing what it described as a more representative view of portfolio value and risk.
