California Teachers’ Pension lowers exposure to China

The $315.6 billion California State Teachers’ Retirement System (CalSTRS) has lowered its exposure to China, according to media outlets.

The nation used to rank fourth and account for 2.1 percent of the pension fund’s asset exposure at the end of December 2020. Two years later, exposure dropped to 1 percent and its ranking fell to sixth. The decline in China exposure has been driven by underperformance relative to peers elsewhere, CalSTRS said in a Bloomberg article.

Nikkei reported that CalSTRS is not the only pension fund pulling back from China’s economy. Ontario Teachers’ Pension Plan and Caisse de depot et placement du Quebec halted or closed dealmaking in China.

CalSTRS reported a 6.3 percent net r