BEIJING, Singapore's sovereign wealth fund, Temasek, is upbeat about the long-term outlook of the Chinese economy, an official says.

China's efforts to deleverage and rebalance the economy and to open up the financial sector will help its economy achieve sustainable development in the long run, said Wu Yibing, Temasek's head of China, in an interview here Wednesday.

A more open financial sector, with concrete measures and swift implementation, shows China's economic confidence and provides considerable opportunities for overseas investors, especially those focused on the long term.

"As an investor in the fundamentals, we value the trend of the macro-economy," Wu said. "We have full confidence in China's mid- and long-term development."

Temasek has just reported a record net portfolio value of 235 billion US dollars as of the end of March, with China forming 26 per cent of its underlying portfolio exposure, second only to Singapore's 27 per cent.

Wu Hai, Temasek's managing director for China, said the fund had increased investment in innovative firms in such areas as technology, life science, and non-banking financial services.

Chinese innovation-based enterprises have a promising future thanks to the broad market and abundant funding, he noted.

"China's economy has gradually shifted to growth more reliant on domestic demand and innovation rather than foreign trade," he said. "No matter what kind of an economic cycle we are in, innovation always drives the economy."

Source: NAM News Network