The fund has invested in about 850 Chinese companies worth about $42 billion by the end of 2022. The value of its global portfolio is currently about 15.2 trillion Norwegian kroner ($1.4 trillion).
The Norwegian Central Bank said in a statement that the decision to close 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 become a hub for the entire Asia region and has been developed to take care of all operational functions, including for China,” he added.
The decision to close the eight-person Shanghai office, which was opened in November 2007, is “a mere adjustment” to the fund’s operating business model, according to the statement.
The move comes at a time when the Chinese economy is struggling to restore its performance before the Covid-19 pandemic, as China’s exports are declining and growth was limited to 0.8 percent between the first and second quarters, while fears of huge debts in the real estate sector are increasing.
The fund, whose revenues are fueled by Norwegian oil and gas companies, aims to finance future spending in the country whose welfare system is known for its generous social welfare.
After closing the Shanghai office, the Norwegian sovereign wealth fund will have four offices around the world, in Oslo, London, New York and Singapore.
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