GIC, a Singaporean sovereign wealth fund that manages more than US$100 billion, will keep its China holdings, despite its statement that China’s slowdown and credit crunch will affect global investment, Bloomberg ;reported. “It’s systemically important,” GIC Chief Economist Leslie Teo said in an interview on Thursday, calling the nation a “key driver for global markets.” “It will affect global equities, including private equity. It will also affect emerging-market equities.” GIC said it remains invested in China because the slowing growth as the result of government reforms is positive. GIC’s annual report shows that it has 13% of its portfolio in North Asian markets.
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