"Temasek is now placing great importance on Asia and investment in China is an essential part of its business," Ms Cheo Hock Kuan, Temasek's Senior Managing Director and Chief Representative for China told Xinhua.

Temasek has bolstered its presence in many Chinese industries, including the banking and financial sector, energy and resources, transport and logistics, telecoms and media, pharmacy and health care.

Ms Cheo said Temasek is keen to invest in state-owned enterprises (SOEs) or other large companies that serve as broad-based proxies for the economic transformation in China.

"Temasek is also interested in investing in promising and fast growing businesses, particularly those that meet the growing consumer demands, or facilitate the increasing integration of China into the regional and global economy," said Ms Cheo.

According to Cheo, a new cargo airline venture between Temasek, Singapore Airlines Cargo and China Great Wall Industry Corp plans to begin its operations in the first half of this year. Besides destinations within China, the new cargo airline will also serve destinations in the United States, Europe, Northeast Asia and Southwest Asia.

Cheo believes the new cargo airline will promote China's integration into the global economy.

Temasek's biggest investment in China is in the banking sector. Investment Managing Director Frank Tang told Xinhua that Temasek reinforced cooperation with China's banks last year through its wholly owned Asia Financial Holdings (AFH).

According to Tang, AFH has just completed a 5% stake purchase in the Bank of China (BOC) for US$1.5 billion, though Temasek originally hoped the stake could be 10%. Butit will try to invest an additional US$1 million in BOC's initial public offering (IPO).

Prior to this, AFH acquired a 5% stake in Shanghai-listed China Minsheng Banking Corporation in January last year and purchased a 5.1% stake in another big Chinese state commercial bank - China Construction Bank last August.

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