China

Norwegian Wealth Fund Transitions Asia Hub to Singapore, Closes Shanghai Office

In a notable shift of its operational strategy, Norges Bank Investment Management, the entity behind Norway's $1.4 trillion sovereign wealth fund and recognized as the world's most extensive equity investor, is shutting down its Shanghai office.

This office, which started operations in November 2007, currently employs eight staff members.

The move, grounded in operational considerations, won't impinge on the fund's investments in the Chinese market. As of the conclusion of 2022, the fund had stakes in roughly 850 Chinese enterprises, amounting to an investment value of about $42 billion.

Singapore is set to gain prominence in the fund's Asian operations. Over time, the Singapore office has progressively emerged as the central hub overseeing the entire Asian region, equipped to manage all operational functions, inclusive of those for China. This pivot to close the Shanghai office mirrors an adjustment in the fund's operational framework.

This decision by Norges Bank Investment Management is in line with a growing trend among global financial giants. As some of them recalibrate their Chinese footprints, the likes of Goldman Sachs and Morgan Stanley are revisiting their expansion strategies in China, with Moody’s having already shut its analytics venture in the country in November 2022.