Sanctions against China: Hit the world’s pension funds directly: in U.S.-China tech fight
[London 26th Reuters]
Impact of US Sanctions on China:
Intensifying conflict between the United States and China over the high-tech field.
It’s putting some SWFs and pension funds in trouble.
Reuters has revealed by analyzing institutional investor data and disclosures.
Pension funds in trouble:
Investors in the form of being “perfect”
From the National Teachers’ Pension Insurance Association (TIAA)
SWF in Norway and Singapore,
It covers a wide range, including the Swiss National Bank.
The direct cause is that the United States issued an investment ban order in November last year to companies that it considers to be related to the Chinese military.
So far, more than 40 Chinese companies have been blacklisted.
Nubean under TIAA:
blacklist
China Telecom,
China Mobile (China Mobile),
China Unicom,
China National Offshore Oil Corporation (CNOCC),
Semiconductor Manufacturing International Corporation (SMIC),
Xiaomi,
forced to sell my stock.
Cal Employee Retirement Pension Fund (Calpers):
China Telecom H share 1.1%,
China Mobile H share 0.2%,
China Unicom H share 0.2%,
Confirm that you have it with Refinitiv.
CalPERS has been criticized by US Republicans for investing in Chinese companies.
The pension has not responded to requests for comment.
Florida Operations Board (FSBA):
It holds a small stake in China Telecom, China Mobile and Xiaomi.
responded to a Reuters interview that he would comply with the investment ban order.
State Street Advisors:
“This ban has really hurt US institutional investors,” said Elliott Hentov, a policy researcher.
Excluded from stock index:
About blacklisted Chinese companies
Not only did the NYSE move to delist,
MSCI,
S & P Dow Jones,
FTSE Russell,
All at once excluded from the stock index.
As a result, the stock prices of some of these companies plummeted by more than 20%, hitting a number of overseas SWFs that had been included in their portfolios.
Norwegian Government Pension Fund:
According to the latest disclosure, it holds various Chinese stocks worth $ 35 billion.
China Telecom,
China Mobile,
Xiaomi,
CNOCC,
China Unicom
It was included at a rate of about 0.2-0.6%.
When I interviewed him, he replied that he would not comment on the individual stocks he owns.
Government of Singapore Investment Corporation (GIC):
China Telecom H share 10%,
SMIC listed in China A shares, H shares 14%,
Reuters’ calculations based on the stock exchange filings revealed that he had it.
refusing to comment.
Quebec Savings and Investment Corporation (CDPQ),
Canadian Public Pension Investment Commission,
Dutch independent pension management company PGGM,
Dutch Civil Service Pension Fund APG Asset,
Holds various Chinese stocks.
President Biden’s Policy:
President Biden’s future policy is not yet clear.
China Telecom,
China Mobile,
Xiaomi,
CNOCC,
Stock prices have fallen by 12-22% since November last year or earlier this month.
SWF’s Investment in China (CIC):
Winston Marr, former Managing Director
Some of the shares sold may be picked up by non-US investors.
But they said it would be difficult to absorb everything.
Reuters
https://jp.reuters.com/article/analysis-us-china-idJPKBN29W0G2
Analysis: Sovereign wealth, public pension giants caught up in U.S.-China tech fight
It hasn’t just been Washington’s actions that have caused difficulties.
Beijing shocked markets in November
when it suspended Ant Group’s planned $37 billion IPO with days to go and just as Trump’s administration was pushing through its bans.
Alibaba, which owns a third of Ant, saw its market value shrink by more than a quarter.
It is a top 10 global stock and widely held by sovereign and pension funds.
Switzerland’s central bank
doubled its Alibaba holdings in the past two years to $1.4 billion worth of the $650 billion company’s stock in September.
November’s tumble would have wiped roughly $350 million off those holdings.
Alibaba shares recovered almost half their losses in January after being spared the U.S. blacklist.
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