Temasek forms fund to invest in Chinese state firms

Temasek will provide half the funding for a US$2 billion China-focused private equity fund set up by Goldman Sachs Gao Hua Securities, Goldman Sachs' mainland joint venture, the Wall Street Journal reported. Funding for the other half will come from several smaller investors. Temasek, Singapore's sovereign wealth fund, and its partners will use the fund primarily to buy stakes in state-owned Chinese companies. Temasek's previous investments in state-owned enterprises include China Construction Bank, Bank of China and China Eastern Airlines.