BEIJING, June 7 -- Temask Holdings Pte, the Singapore government's investment holding company, may invest in China's city commercial banks, the company's financial investment holding subsidiary said.

    "So far we have not found a target that meets our criteria, but it is 100 percent wide open," Eric Chen, North Asia and China president of Temasek-owned Asia Financial Holdings Pte Ltd, said at a press briefing in Beijing yesterday.

    Temasek's stakes in state-owned banks like Bank of China and China Construction Bank Ltd, and commercial lenders like China Minsheng Bank, are held through Asia Financial. Current regulations prevent Temasek from expanding its stakes in state-owned Chinese banks, and Temasek doesn't yet hold stakes in any Chinese city commercial banks.

    As regulators relax rules in the future to allow more foreign ownership in state-owned banks, Temasek will also consider increasing their stakes, Richard Hu, Asia Financial chairman, said at the briefing.

    "We're always looking for investment opportunities, wherever they are," Hu said.

    Temasek controls a S$7.5 billion (US$4.6 billion) investment portfolio in China, including holdings in transport and financial services companies. It bought shares in China COSCO Holdings Ltd and Air China Ltd in their initial public offerings in Hong Kong. The fund also owns 3.9 percent of China Minsheng Bank, 6.6 percent of China Construction Bank Ltd and 5 percent of Bank of China.

    Regulations say overseas investors can own stakes in as many as two banks in separate categories, Chen said.

    (Source: Shanghai Daily)