Canada’s largest pension fund, CPP Investments, has made significant changes as it reevaluates its approach to China, including layoffs and pausing investments.
Staff Reductions in the Hong Kong Office
At least five investment professionals, mainly from the private equity team, have been laid off in CPP Investments’ Hong Kong office. Additionally, the managing director overseeing the Greater China real estate portfolio has been informed of the loss of his position.
China Investment Freeze
CPP Investments has put a hold on new investments in China, including direct investments and those with China-focused fund managers. This decision is influenced by concerns about China’s economic recovery and strained relations with Western countries.
Political Tensions Impact Business Climate
The strained political relationship between Canada and China, coupled with a challenging business climate for foreign firms, has led to this strategic shift by CPP Investments. Increasing trade and political tensions between China and the U.S. have also impacted foreign businesses, making the investment environment less favorable.