Daily Management Review

Norwegian sovereign wealth fund to close its only office in China


The largest sovereign wealth fund in the world, the Norwegian Sovereign Fund, decided to close its only office in China while keeping its interests there.

The fund's Shanghai branch had been operational since November 2007, according to the bank’s statement. It now employs eight people. The fund cites the "operational aspects", noting that the Singapore office keeps serving China as well.

The Norwegian Sovereign Fund today has assets worth more than $1.4 trillion. It makes investments in more than 9200 businesses across 70 nations. By the end of 2022, the fund had made investments totaling around $42 billion in over 850 Chinese businesses.

According to Reuters, several financial companies are currently reevaluating their position in China due to increased regulatory control in the nation and China's deteriorating political relations with the West. 

When questioned by Reuters about whether the decision to close the office was motivated by political unrest or cybersecurity concerns, the Norwegian Sovereign Fund did not answer. At that, according to reliable sources who spoke to Reuters, staff members at the fund's Shanghai office complained about the looming shutdown.

source: reuters.com