Norway’s $1.4 trillion sovereign wealth fund has started winding down its office in Shanghai as Singapore takes over as its hub in Asia, reports Bloomberg. The fund is initiating the process to close its representative office in the city due to “operational considerations,” Norges Bank Investment Management said on Thursday. The move doesn’t affect the investment strategy in China, it said.
That mirrors a shift among other international investors, with banks including Goldman Sachs Group Inc. and Morgan Stanley scaling back ambitious expansion plans in China amid a deteriorating geopolitical climate. Goldman Sachs recently revised projections on its five-year plan and has let go more than a 10th of its workforce on the mainland after doubling headcount to over 600.
The Ontario Teachers’ Pension Plan announced earlier this year it was shutting an Asia equity investment team in Hong Kong, cutting five jobs, while Moody’s Corp. shuttered the China operations of its risk management division, laying off about 100 people, people familiar said in November last year. Moody’s Analytics closed its offices in Beijing, Shanghai and Shenzhen following discussions about operating efficiency and profitability, the people said.
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