Singapore's Temasek expands China investment with JD.com, Cheetah Mobile

Summary:China's second-largest e-commerce player receives a funds injection after the Singapore investment firm buys up 602,139 shares for US$17.2 million. Temasek also forks out US$12.8 million for Chinese security software maker, Cheetah Mobile.

Singapore's Temasek Holdings has invested US$17.2 million in China's second-largest e-commerce site, JD.com, as well as US$12.8 million in Chinese IT security player, Cheetah Mobile. 

The  state-owned investment company bought out 602,139 American depositary shares of JD.com worth US$17.2 million in market value, reported Bloomberg on Friday, citing a filing with the U.S. Securities and Exchange Commission. The Singapore firm also forked out US$12.8 million for 603,764 American depositary shares in Cheetah Mobile , which in June reported a revenue increase of 131.6 percent to US$50.8 million in first-quarter 2014. It has a monthly active mobile users of 222.5 million. 

Both JD.com and Cheetah Mobile earlier this year listed on the Nasdaq and New York Stock Exchange, respectively. The two investments will extend Temasek's reach in China and reduce its dependence on banks, Bloomberg noted.

According to Temasek's website, 30 percent of its portfolio value are from the financial services sector. Telecommunications, media, and technology account for 23 percent of its total portfolio, which is valued at S$223 billion (US$178.84 billion) as of March 31, 2014. Some 41 percent of its investment are in Asian markets, excluding Singapore which accounts for 31 percent. 

The report added that Temasek also bought into China's biggest e-commerce operator and JD.com rival, Alibaba Group Holdings , which is slated to launch the biggest U.S. IPO  later this year. 

Alibaba in May signed an agreement to invest S$312.5 million (US$248.88 million) for a 10.35 percent stake in Singapore's postal service, SingPost, which is an associate company of local telco SingTel. The public-listed Singapore carrier, is majority-owned by Temasek.

Topics: E-Commerce, China, Singapore

About

Eileen Yu began covering the IT industry when Asynchronous Transfer Mode was still hip and e-commerce was the new buzzword. Currently a freelance blogger and content specialist based in Singapore, she has over 15 years of industry experience with various publications including ZDNet, IDG, and Singapore Press Holdings. Eileen majored i... Full Bio

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