Canadian pension fund CPP stepping back from China investments
- September 1, 2023
- Posted by: Quatro Strategies
- Categories: Americas, Business & Politics, China
Canada Pension Plan Investment Board (CPP Investments), the largest pension fund in Canada, has laid off at least five investment professionals in its Hong Kong office as part of its decision to scale back its investments in China. Most of those who left were part of the private equity team, and one managing director responsible for the firm’s Greater China real estate portfolio was informed earlier about losing his position.
The departures occurred in August, and the information hasn’t been publicly disclosed until now. CPP Investments has confirmed the layoffs, stating that they were part of ongoing organizational changes and not directly related to their approach to investments in China.
The pension fund has chosen to pause new investments in China, including both direct investments and commitments to China-focused fund managers. This decision is influenced by several factors, including concerns about China’s faltering economic recovery and increasing tensions between China and Western nations. CPP Investments had previously indicated in its annual report that it was reviewing its strategy in emerging markets, taking into account the evolving relationships between Canada, the U.S., and China.
The move by CPP Investments is in line with a broader trend among Canadian pension funds, with others also reducing their exposure to China. In April, the Ontario Teachers’ Pension Plan (OTPP) shut down its China equity investment team based in Hong Kong. Caisse de dépôt et placement du Québec (CDPQ), Canada’s second-largest pension fund, has halted private investments in China and will close its Shanghai office by the end of the year.
These pension funds’ decisions reflect concerns about China’s business environment and the deteriorating relationship between China and Western countries. The ongoing trade tensions and geopolitical disputes have created uncertainty for foreign investors operating in China.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
UK reboots ties with Zimbabwe in push for lithium and critical minerals
The rekindling of diplomatic ties between the United Kingdom and Zimbabwe marks a strategic realignment shaped not only by historical reconciliation, but also by a shared interest in critical minerals, particularly lithium, a metal central to the global energy transition and high-tech industries.
For nearly three decades, relations between Zimbabwe and the UK were marked by escalating tension, triggered by disagreements over land reform, human rights, and Western-imposed sanctions. The rupture began in 1997, when Britain refused to fund Zimbabwe’s land redistribution program, citing the absence of a colonial obligation.
China’s State Council announces stimulus measures to revive consumer spending
China’s State Council announced a “special action plan” on Sunday aimed at bolstering domestic consumption through a series of measures, including raising household incomes and establishing a childcare subsidy system. The initiative is a response to the country’s sluggish consumer demand, which has been hit by COVID-19 disruptions, a prolonged property market downturn, and deflationary pressures.
The plan, issued to all regional governments and departments, emphasizes the need to “vigorously boost consumption, expand domestic demand in all directions, and improve consumption capacity by increasing income and reducing burdens.” It aligns with Chinese Premier Li Qiang’s recent work report to the National People’s Congress, which underscored the importance of stimulating household spending to offset weak external demand.
Gold’s break above $4,000 ignites a wider metals rally
Gold’s moonshot above $4,000 has turned the entire precious-metals complex into a refuge trade, but the leadership isn’t where most people expect. Silver, platinum and palladium have sprinted even faster, riding a powerful mix of macro anxiety and a fear that U.S. policy is veering from gradual de-dollarisation toward outright dollar debasement.
In marketspeak, investors are rotating from “what replaces the dollar?” to “how do I protect purchasing power if policy credibility cracks?” When that mindset takes hold, people don’t just buy bullion; they buy anything scarce, portable and outside the fiat system and the smaller metals, with tighter markets, can respond with outsized moves.