Norway's wealth fund to close Shanghai office; Singapore to remain its sole hub in Asia
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The fund invested in around 850 Chinese companies worth about US$42 billion (S$57 billion) at the end of 2022.
PHOTO: REUTERS
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OSLO - Norway’s massive sovereign wealth fund, the world’s biggest, said Thursday it will close its representative office in Shanghai but the move will not affect its investments in China.
The fund invested in around 850 Chinese companies worth about US$42 billion (S$57 billion) at the end of 2022.
Its global portfolio is currently worth around 15.2 trillion kroner (S$1.9 trillion).
A statement said the decision to shut the Shanghai office “is driven by operational considerations and does not affect the fund’s investment strategy or our investments in China”.
“Over the years, our Singapore office has increasingly served as the hub for the whole of the Asian region and has been built up to take care of all operational functions, including for China,” it said.
The eight-person Shanghai office opened in November 2007 and its closure is “only an adjustment” to the fund’s operating business model, the statement added.
The move comes as China’s economy is struggling to regain its pre-pandemic strength, with lacklustre growth, declining exports and concerns about massive debt in its property sector.
Fuelled by revenues from Norway’s state-owned oil and gas companies, the fund is aimed at financing future spending in the generous welfare state.
The move will leave the fund with four offices worldwide, in Oslo, London, New York and Singapore. AFP
