Norway’s Bank Investment Management (NBIM), which manages the world’s largest sovereign wealth fund. Has begun closing its office in Shanghai, another indication that major international corporations are scaling back their.
The company is the world’s largest individual stock market investor and oversees Norway’s $1.4 trillion government pension fund. It owns shares in 850 Chinese companies valued at around $42 billion as of the end of 2022. Future management of those investments will occur in Singapore, the company’s Asia base.
Firstly, NBIM, the decision to close its Shanghai office made due to “operational considerations”. And will not have an impact on the fund’s investments or its China investment strategy.
Secondly, According to the company, eight staff are currently working at the Shanghai office. According to the statement, this will guarantee that the closing procedure is carrie out “orderly” for all parties involve and in accordance with local laws.
The move seems to be consistent with a trend among foreign investors to diversify. Their commercial activities away from China as concerns about doing business there increase.
One of the largest pension funds in the world, Ontario Teachers’ Pension Plan, terminated its China equity investment team in Hong Kong early this year. A corporate representative told in May that there will be no longer be country-specific stock-picking teams stationed in Asia.
The majority of Forrester Research’s China analysts were also going to be laid off around the same time, a US tech-focused research and consultancy business. The company responded in May by stating that the change was a part of its global restructuring and that its global research team would take care of its clients in China.
The Chinese economy is struggling. The severe downturn in the housing sector poses a risk of a wider debt crisis.Youth are coping poorly with record unemployment. Businesses and households are becoming less and less eager to spend money or make investments as they lose faith in the future of the country.