KUALA LUMPUR, June 22 (Bernama) -- Bursa Malaysia ended on a softer note today as investors engaged in profit-taking following the recent rebound in the local market, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 0.65 per cent, or 11.19 points, to 1,700.84 from last Friday's close of 1,712.03. The benchmark index opened 1.56 points lower at 1,710.47 and moved between 1,699.94 and 1,712.32 throughout the trading session. Market breadth was negative, with decliners outnumbering gainers 560 to 481. A total of 608 counters were unchanged, 1,649 untraded, and 14 suspended. Turnover slipped to 3.29 billion units worth RM2.40 billion from 3.45 billion units worth RM3.79 billion on Friday.
Deep-pocketed Middle Eastern investors are pouring record capital into China, even as many global firms pull back due to rising regulatory scrutiny, geopolitical tensions, and market volatility. Key players such as Abu Dhabi Investment Authority (ADIA), Mubadala Investment Co, and Saudi Arabia’s Public Investment Fund (PIF) are leading the charge, targeting high-quality assets at significant discounts.
DIA recently participated in Midea Group Co’s $4 billion listing in Hong Kong and a major $8.3 billion deal for Dalian Wanda Group Co’s shopping mall unit. Lenovo Group Ltd also secured $2 billion through zero-coupon convertible bonds from Saudi Arabia's sovereign wealth fund.
Data compiled by Bloomberg shows that Middle Eastern investment into Greater China has hit $9 billion so far this year, with dealmakers expecting this pace to accelerate. This surge comes as Chinese asset valuations are seen as the most attractive in the Asia-Pacific (APAC) region, according to Deutsche Bank’s Mayooran Elalingam.
Middle Eastern sovereign wealth funds, controlling over $4 trillion in assets, have been pivotal in global dealmaking, with over 50% of all deals by state-backed investors in 2024 involving these funds. However, despite this influx, overall deal activity in China is down 12% from last year due to concerns over China's slowing economy and investor confidence.
Middle Eastern investments in China have targeted sectors where the country holds a global competitive advantage, including high-end manufacturing, semiconductors, and artificial intelligence (AI). In addition, Saudi Aramco has ramped up its investments, exploring opportunities in chemical plants and securing long-term buyers for its crude oil.
The growing interest from Middle Eastern funds reflects their strategy of diversification, not just in China but across the wider APAC region, including Southeast Asia, India, and Japan. These investors are playing a key role in facilitating acquisitions, capitalizing on the current economic environment to acquire valuable assets at favorable prices.
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