California State Teachers Retirement System (CalSTRS), the second-largest pension fund in the US, has been continuously decreasing its exposure to China, following several of its counterparts, amid exacerbating geopolitical tensions, reports Nikkei Aisa. According to the pension fund’s latest report, China fell off its list of top 10 countries where CalSTRS has its highest market value and revenue exposures as of May 31.
The nation used to rank fourth and account for 2.1% of the pension fund’s asset exposure at the end of December 2020. Two years later, exposure dropped to 1% and its ranking fell to sixth.
CalSTRS is not the only pension fund that has been pulling back from the world’s second-largest economy. Ontario Teachers Pension Plan reportedly closed down its China equity investment team based in Hong Kong earlier this year. It also paused directly investing in private assets in the country.