Singapore’s sovereign fund Temasek Holdings Pte. has forecast China’s economy is near the bottom and there is a chance its growth could bounce back later this year.
Temasek’s Chief Investment Officer Rohit Sipahimalani gave his forecast when he spoke to Bloomberg on the sidelines of the Milken Institute’s Global Conference in Los Angeles on Tuesday.
Sipahimalani said that China is “close to the trough, so a very different stage in the cycle.”
He said that he sees the growth on the rise in the second half of this year.
China’s National Bureau of Statistics reported on April 18 that the world’s second-largest economy expanded 4.8% year-on-year in the first quarter of 2022, following the growth of 4% in the previous quarter.
The growth rate remained weak in early this year as China’s industrial cities such as Shanghai and Shenzhen shut down to fight Covid-19 pandemic and the disruptions in trade and manufacturing.
The first-quarter growth is below the annual target of 5.5% that the Chinese government has set for this year.
Some analysts forecast China’s government would introduce large stimulus spending measures to meet the growth target.
Regarding Temasek, Sipahimalani expects that China’s growth would rebound in the second half as its government stimulates the economy.
According to Bloomberg, the chief investment officer at Temasek also expressed a bullish view on China’s broad stock market.
Temasek is managing assets worth 381 billion Singapore dollars (about 275 billion dollars) as of March 2021.
With about 27% of Temasek’s current position invested in China, the country is the single largest geography for its holdings, just ahead of Singapore.