Norway's $1.4 trillion investment fund is shutting its China office

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Norges Bank Investment Management (NBIM), which operates the world’s largest sovereign wealth fund, has started the process of closing down its office in Shanghai, in another sign of big global companies pulling back operations in the world’s second largest economy.

The firm, which manages Norway’s $1.4 trillion government pension fund, is the world’s biggest single investor in the stock market. As of the end of 2022, it owned shares worth about $42 billion in some 850 Chinese companies. Those investments will be managed in future from its Asia hub in Singapore, it said.

said in a statement on Thursday. There are currently eight people in the Shanghai office, the firm said. It will ensure the closing process is conducted in an “orderly” manner for everyone affected and will be in line with local requirements, it added. The retreat appears to be in line with a trend among international investors to diversify their operations away from China as uncertainty grows around doing business in the country.

set up its Shanghai office in November 2007, a year after the Chinese regulator granted the Norwegian sovereign wealth fund a license to trade directly in mainland China’s stock exchanges. It was the firm’s first Asian office. The firm, which is the investment management division of the Norwegian central bank, said it was in the process of shifting the Asia region’s operational functions to Singapore. That office opened in 2010, three years after Shanghai.

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