China remained the largest investment destination country of Singapore's investment company Temasek Holdings, accounting for 27 percent of the company's exposure to underlying assets, according to its 2021 annual report.

Following China, Singapore, with 24 percent of the exposure, was the second-largest destination country of Temasek's investment, and the region covering the United States, Canada and Latin America, ranked the third with a share of 20 percent, the report said.

"China's economy remains ahead of others in the recovery cycle. Policy has normalized from a loose stance earlier, and remains largely neutral for now," Temasek said in the annual review.

The company does not expect China's policy to tighten sharply despite higher commodity prices, and the government's focus is likely to continually shift toward sustainable long-term growth, according to the report.

On Tuesday, Temasek reported a record high of net portfolio value of about S$381 billion ($281.26 billion) for the financial year ended March 31, 2021. It was up by S$75 billion ($55.37 billion) from a year earlier.

Temasek's one-year total shareholder return was 24.53 percent, and this return, since inception in 1974, showed an annualized 14 percent compounded over 47 years, indicated the annual report.

In the past financial year, in China, the Singapore company invested in Black Lake Technologies, a provider of manufacturing operation management software solutions; Genki Forest, an innovative healthy beverage company; and Clover Biopharmaceuticals, a biopharma company developing vaccines and oncology drugs.