Japan’s Government Pension Investment Fund (GPIF), managing $1.7 trillion, has changed its benchmark for foreign equity investments, according to a recent update cited by Reuters. The new benchmark excludes onshore Chinese A-shares, marking a shift from its previous use of the MSCI All Country World Index (ex Japan), which included them. The change will apply for the five-year period starting in 2025.
While GPIF did not officially explain the reason behind the adjustment, Reuters reports that growing concerns among global investors over China’s domestic economic troubles and rising geopolitical tensions may be contributing factors. This cautious stance reflects broader investor sentiment around the risks of holding Chinese A-shares.
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