Norway’s $1.4 trillion sovereign wealth fund, is closing its only office in China and moving it to Singapore, the fund said on Thursday, September 7.
The Norwegian fund has mentioned concerns about rising tensions between the United States and China as the biggest geopolitical risk. Still, the fund stated on Thursday, that the closure of the Shanghai office was “an operational decision”.
“Our investments remain unchanged. We use a combination of internal expertise and external managers to invest in China and will continue to do so,” Trond Grande, the Deputy CEO told Reuters.
The fund held around $42 billion across 850 Chinese and Hong Kong companies at the end of 2022. This was down from $47 billion in 2020, where the funds Chinese investments peaked according to available data.
The Shanghai office, which opened in 2007, had eight employees. According to Reuters, the staff reacted harshly to Thursday’s announcement.
Trond Grande told the press, that the fund will ensure the closure is conducted in an orderly manner and in line with local requirements and procedures.
Source: bloomberg.com
