Denmark’s largest pension fund, PFA, has cut its investments in two Chinese clothing brands, and it is evaluating other Chinese holdings as the investment risk is growing in the country.

According to Bloomberg, PFA Asset Management, having about $100 billion in assets under management, has sold out its holdings of $4.2 million in Anta Sports and Li Ning.

Rasmus Bessing, chief operating officer at PFA, said, “We see China and the political development and believe that there is an increased political risk associated with Chinese companies.”

Bessing added that PFA’s latest move was not “solely due to political reasons,” but such matters are “an increasing concern.” 

PFA is the latest institutional investor to withdraw from Chinese holdings and join the money manager’s China exodus. Earlier this month, Tiger Global Management also pulled back new investments in Chinese equities as it reviews exposure to the country.

As reported by Bloomberg, Prosus NV, Warren Buffett’s Berkshire Hathaway Incorporated, and Japan’s SoftBank Group Corporation have all reduced shares in certain stocks. Additionally, pension funds in Texas and Florida are either reducing allocations or halting new investments.

Earlier this year, Norway’s sovereign wealth fund dumped Li Ning from its portfolio, citing human rights violations in Xinjiang. According to the South China Morning Post, funds sold Chinese stocks around the global markets for $30 billion last year. The new outlet cited a Goldman Sachs report, saying investors might cut a further $100 billion to $200 billion in unfavorable scenarios.

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