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Singapore’s GIC sees opportunities in China real estate sector, report says

GIC CEO Lim Chow Kiat says the fund is confident the Chinese government won’t let things “spiral out of control” after several property development firms
By Goh Thean Eu   
December 21, 2021

Singapore’s GIC Pte Ltd sees potential opportunities to do deals and buy debt in China’s real estate sector, according to Bloomberg, quoting Lim Chow Kiat, chief executive officer of the sovereign wealth fund.

“We continue to have confidence that it is a good investment market for us. We are not moving away from being involved in the Chinese real estate market,” Lim says in an interview with the news agency published on December 17.

He says GIC is confident the Chinese government won’t let things “spiral out of control” after several property development firms, including China Evergrande Group, defaulted on coupon payments.

“We believe they have enough central bank balance sheet, and within their system they have enough levers to make sure that things do not spiral out of control,” he says.

Lim also says GIC is bullish on Chinese sovereign debt and suggested the fund may add to its holding. “We have been actually invested for a long time already…Structurally, it definitely has a place in our portfolio… Probably a bigger place down the road,” he says.

 GIC doesn’t publicly disclose its asset data. The Sovereign Wealth Centre estimates the wealth fund had around US$545 billion of assets as of March 2021.