Norges Bank Investment Management has decided to close its Shanghai office and select Singapore as its hub for Asia.
Norges Bank Investment Management – Norway’s $1.4 trillion sovereign wealth fund and the world’s largest equity investor – has initiated the process to close its representative office in Shanghai, according to a statement. The office has been operating since November 2007 and currently houses eight people.
The decision is due to «operational considerations» and will not affect investments in China. As of the end of 2022, the fund was invested in approximately 850 Chinese companies with a total value of around $42 billion.
Singapore as Hub
Meanwhile, Norges Bank Investment Management will opt to use Singapore as its hub for Asia.
«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,» the wealth fund said. «Effectively, the decision to close the office in Shanghai is therefore only an adjustment of our operating business model.»
Norges Bank Investment Management joins a growing number of international financial players seeking to downsize in China. Goldman Sachs and Morgan Stanley are both moderating growth plans while Moody’s closed its analytics business in China in November 2022.
