Top Canadian Institutional Investor Raises Its Bet on China
What’s new: The Canada Pension Plan Investment Board (CPPIB), a top institutional investor that has been putting money in China for years, is looking to bet more heavily on Chinese markets in the coming years.
In an interview with Caixin, Suyi Kim, senior managing director and head of Asia Pacific for CPPIB, said that the company expects to invest about a sixth of its total portfolio in China by 2025, up from the current 13%.
Kim said that the company’s investment in emerging markets is expected to reach a third of its total investment portfolio by 2025, and almost half of it is expected to be in China.
What’s the background: Mark Machin, president and CEO of the CPPIB, told Caixin in 2016 that the company’s bet on China was less than 5% of the total portfolio, and it had only about 80 employees in the Asia Pacific region at the time.
Kim said that the company now has about 160 employees in Asia Pacific, about 140 of whom are based in Hong Kong to handle investment in China. The rest are based in Mumbai and Sydney.
At the end of March, the CPPIB had C$409.6 billion ($300.8 billion) in net assets, according to a statement it released in May.
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