At a time when foreign investment banks are cutting their direct exposure to China's banking sector, Singapore state investor Temasek Holdings Pte Ltd stood by its investments in China's top banks, saying they were well equipped to cope with disruptions like the recent interbank credit crunch. It also said that the structural change in China could yield further investment opportunities, both in state-owned enterprises and private companies. To this, SMU BNP Paribas Hedge Fund Centre Director and Professor of Finance Melvyn Teo said: "My sense is China is still a real risk for Temasek. The tightening of the credit in China, the increased cost of capital, and the end of the investment-led boom will conspire to drive down the stock prices of the Chinese banks that Temasek has a significant stake in.”