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Temasek Holdings - Singapore's SWF - unloads 49% of its Bank of China (BACHY.PK) and 8% of its...

Temasek Holdings - Singapore's SWF - unloads 49% of its Bank of China (BACHY.PK) and 8% of its China Construction Bank (CICHY.PK) holdings, apparently getting as jittery as others over the scale of bad debt on (and often hidden off of) the banks' books. Already down sharply in past weeks, both lenders fell nearly another 4% in Hong Kong last night.
Comments (6)
  • vtorch
    , contributor
    Comments (288) | Send Message
     
    Temasek bought into Merrill Lynch before it collapsed, and sold its Bank of America shares at a low point in the stock price. The team's track record in analyzing banking stocks is questionable. I don't think the fact that they are selling BOC and CCB stocks means anything at all, as it is probably the same team at work.
    6 Jul 2011, 10:10 AM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (540) | Send Message
     
    As I recall, they sold their BAC in May 09, after the stock had nearly tripled from the lows and at about the same price the stock sits at today. If I'm not mistaken, they rolled that money into China Construction Bank, which has had a tough time this month, but a far better investment than BAC over the past 2+ years.

     

    Who knows, maybe they've learned from their holding onto ML for too long? Anybody who is in this business makes their share of boners.
    6 Jul 2011, 10:16 AM Reply Like
  • vtorch
    , contributor
    Comments (288) | Send Message
     
    The entire stake was exited in Q1 2009, at what price? Not sure, but doesn't seem promising. And CCB did underperform the Hang Seng Index over the past 2+ years.
    7 Jul 2011, 09:36 AM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (540) | Send Message
     
    Don't know the exact price of course, but the news was announced in May 09, when BAC was in the mid-10's, about where it is now and a triple from $3 and change in March 09. A pretty good move.
    7 Jul 2011, 09:50 AM Reply Like
  • vtorch
    , contributor
    Comments (288) | Send Message
     
    It was announced in May 09 that the sale was completed during Q1 2009. This is probably extracted from a 13F filing (if my memory serves me ok) or something similar. Some times, it makes sense to read the entire article.

     

    Link to story:
    www.bloomberg.com/apps...
    9 Jul 2011, 01:58 AM Reply Like
  • vtorch
    , contributor
    Comments (288) | Send Message
     
    Sadly, Warren Buffett's deal make Temasek look like a bunch of amateurs ...
    27 Aug 2011, 04:04 AM Reply Like
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