Another Canadian pension giant puts brakes on China investment

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The Quebec pension giant has stopped making private deals in China and is closing its Shanghai office, say sources. Read more

“We paused private investments for some time already — and have focused on liquid markets, which is the majority of our 2 per cent total portfolio exposure to China. We expect this trend to continue,” CDPQ said in a statement.

The fund’s decision comes less than two years after CDPQ’s chief executive, Charles Emond, said that the pension giant was planning to increase its exposure to China from about 4 per cent of its overall portfolio to as much as 10 per cent in the years to come.In recent months, China has cracked down on consultancy firms, rattling western companies that rely on their advice, and banned operators of critical infrastructure from buying U.S. chipmaker Micron Technology’s products.

In return, the U.S. has made it more difficult for China’s tech sector to access cutting-edge components and machinery. The U.S. government is also weighing imposing restrictions on outbound investment into China. Business leaders are carefully navigating their relationship with China as the country reopens following the coronavirus pandemic. Several high-profile foreign executives, including Elon Musk, the chief executive of Tesla, andBut Dimon did warn of the risk for investor confidence of “uncertainty” about the Chinese government’s policies, as manufacturing data showed that the recovery in the world’s second-largest economy is faltering.

 

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