© Reuters. FILE PHOTO: The Caisse de depot et placement du Quebec (CDPQ) constructing is seen in Montreal, Canada February 26, 2014. REUTERS/Christinne Muschi
(Reuters) -Canada’s second-largest pension fund Caisse de dépôt et placement du Québec (CDPQ) has stopped making personal offers in China and can shut its Shanghai workplace this yr, the Monetary Occasions reported on Thursday, citing folks conversant in the matter.
The information follows a Might 8 parliamentary listening to through which a number of Canadian pensions, together with CDPQ, have been requested about their relationship with China as bilateral political tensions have intensified.
CDPQ is main its regional funding efforts from Singapore, the report stated, noting that it nonetheless has enterprise pursuits in China.
“We paused personal investments for a while already — and have targeted on liquid markets, which is almost all of our two per cent whole portfolio publicity to China. We count on this pattern to proceed,” the newspaper quoted CDPQ as saying in an announcement.
CDPQ confirmed the Shanghai workplace closure later this yr, however declined to remark additional.
The Monetary Occasions in February reported that Singapore’s sovereign wealth fund GIC has decreased personal investments in China.
Through the Might listening to, Michel Leduc, a senior supervisor on the Canada Pension Plan Funding Board (CPPIB), stated China was an “essential supply” for its portfolio.
“We acknowledge that any funding in China must be dealt with with care, sophistication, and an acute understanding of the present political and geopolitical atmosphere,” Leduc stated.
A CPPIB spokesperson declined to remark additional on Thursday.
In Might, Canada’s C$211.1 billion ($157.87 billion) British Columbia Funding Administration Company (BCI) stated it had decreased publicity in China and Hong Kong by about 15% over two years and paused direct investments in China.
“Our present publicity in China is lower than 5% of the general BCI portfolio, the vast majority of which is thru public markets and by way of listed funds,” the asset supervisor stated.
In April Canada’s third largest pension fund, Ontario Lecturers’ Pension Plan (OTPP), additionally closed its China public fairness funding crew primarily based in Hong Kong.
At first of the yr, OTPP stated it was pausing future direct investments in personal belongings in China, citing geopolitical threat as an element.
OTPP expects to call a brand new head of Asia-Pacific Personal Capital Direct within the coming months to exchange Raju Ruparelia who has left to pursue different alternatives, a spokesperson stated by e-mail.
($1 = 1.3372 Canadian {dollars})
