{"id":13885,"date":"2026-01-14T09:26:02","date_gmt":"2026-01-14T09:26:02","guid":{"rendered":"https:\/\/jobuzo.com\/en\/sovereign-investors-cut-mainland-china-exposure-as-political-sensitivities-rise\/"},"modified":"2026-01-14T09:26:02","modified_gmt":"2026-01-14T09:26:02","slug":"sovereign-investors-cut-mainland-china-exposure-as-political-sensitivities-rise","status":"publish","type":"post","link":"https:\/\/jobuzo.com\/en\/sovereign-investors-cut-mainland-china-exposure-as-political-sensitivities-rise\/","title":{"rendered":"Sovereign investors cut mainland China exposure as political sensitivities rise"},"content":{"rendered":"<div>\n<div><img decoding=\"async\" src=\"https:\/\/cdn.i-scmp.com\/sites\/default\/files\/styles\/og_image_scmp_generic\/public\/d8\/images\/canvas\/2026\/01\/14\/f23061e0-5080-44e0-9446-1a3df987f21b_d21c6d0a.jpg?itok=Uu-Topwb&amp;v=1768371866\" class=\"ff-og-image-inserted\"><\/div>\n<div datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1xdhyk6 ec74h0k0\" readability=\"9.8391959798995\">Sovereign investors slashed their exposure to mainland China in 2025 amid rising political sensitivities, but experts said selective opportunities and <span data-qa=\"Component-Text\" class=\"css-0 ef9u0v00\">closer bilateral ties<\/span> could support the outlook.<\/div>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The world&rsquo;s second-largest economy received US$4.3 billion in investments from sovereign wealth funds, public pension funds and central banks, down 58 per cent from US$10.3 billion in 2024, according to Global SWF, which tracks 792 such state-owned investors.<\/p>\n<div datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1xdhyk6 ec74h0k0\" readability=\"13.767123287671\">&ldquo;Sovereign investment activity has become <span data-qa=\"Component-Text\" class=\"css-0 ef9u0v00\">increasingly politicised<\/span>, which has forced some Western state-owned investors such as Canadian and European funds to reduce exposures and avoid major deals in China,&rdquo; Diego Lopez, founder and managing director of the data platform, told the Post.<\/div>\n<div data-qa=\"InlineAdSlot-Container\" class=\"css-zl1inp e11v3ui14\">\n<div class=\"e11v3ui10 e11v3ui13 css-1evd7i0 e1flwkbl0\" data-qa=\"AdSlot-Container\">\n<p>Advertisement<\/p>\n<\/div>\n<\/div>\n<div datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1xdhyk6 ec74h0k0\" readability=\"13.559748427673\">Diversification away from developed markets had <span data-qa=\"Component-Text\" class=\"css-0 ef9u0v00\">propped up<\/span> ventures into China in 2024, but an absence of major deals in 2025 disrupted the goal, Lopez said. He added that the drop was surprising, as Chinese sovereign wealth funds continued to grow in size and cement relationships with their counterparts in the Gulf.<\/div>\n<div datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1xdhyk6 ec74h0k0\" readability=\"13.467391304348\">In 2025, the biggest inflows came from Singapore&rsquo;s <span data-qa=\"Component-Text\" class=\"css-0 ef9u0v00\">Temasek<\/span>, with US$1.3 billion, followed by Abu Dhabi&rsquo;s Mubadala Investment and the Qatar Investment Authority, according to Lopez.<\/div>\n<div data-qa=\"InlineAdSlot-Container\" class=\"css-zl1inp e11v3ui14\">\n<div class=\"e11v3ui10 e11v3ui13 css-117a6hs e1flwkbl0\" data-qa=\"AdSlot-Container\">\n<p>Advertisement<\/p>\n<\/div>\n<\/div>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">&ldquo;Tech geopolitics is a major factor for the 2025 drop in China&rsquo;s sovereign deal volume from sovereign wealth funds and other state investors,&rdquo; said Winston Ma, an adjunct professor at New York University School of Law and former head of North America for China Investment Corporation, the country&rsquo;s sovereign wealth fund.<\/p>\n<div datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1xdhyk6 ec74h0k0\" readability=\"11.987012987013\">&ldquo;As government-affiliated investors, the sovereign wealth funds were inevitably cautious about <span data-qa=\"Component-Text\" class=\"css-0 ef9u0v00\">geopolitical risks<\/span>, at a time when some Chinese tech start-ups were already on the US sanctions list in their early years,&rdquo; he said.<\/div>\n<\/div>\n<p><sub>Sovereign investors cut mainland China exposure as political sensitivities rise<\/sub><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sovereign investors slashed their exposure to mainland China in 2025 amid rising political sensitivities, but experts said selective opportunities and closer bilateral ties could support the outlook. The world&rsquo;s second-largest economy received US$4.3 billion in investments from sovereign wealth funds, public pension funds and central banks, down 58 per cent from US$10.3 billion in 2024,&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/jobuzo.com\/en\/sovereign-investors-cut-mainland-china-exposure-as-political-sensitivities-rise\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;Sovereign investors cut mainland China exposure as political sensitivities rise&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":13886,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-13885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/posts\/13885","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/comments?post=13885"}],"version-history":[{"count":0,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/posts\/13885\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/media\/13886"}],"wp:attachment":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/media?parent=13885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/categories?post=13885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/tags?post=13885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}