The total returns to shareholder was merely 4.6%, after dumping US$3.6 billion of shares in Bank of China and China Construction Bank (not included for the net profit computation). Temasek MD Nagi Hamiyeh said the divestment was part of the portfolio rebalancing, while reiterating in the same breath, "We are bullish on China in the long term." Why sell if the future looks promising? Another buy high, sell low stratagem like the Bank of America "divestment" in 2Q 2009? Temasek lost US$1 billion in that one deal (188.8 million BOA shares valued at US$13.7 each sold at an average US$8.67 per share).
The bragging rights seem to be about the Temasek portfolio hitting a record $193 billion. But where, may we ask, is the source of funds for the shopping spree? Full story
