Geopolitical risk is reportedly among the reasons the $242.5-billion pension fund manager is halting investments. The firm currently has about $5 billion in assets in the country, representing about two per cent of its portfolio. (Bloomberg)

Talking point: Teachers’ has led several investments in private Chinese firms in recent years, including in fintech CD Finance and online education startup Zuoyebang. Its pause on new investments in the category comes as Canada cracks down on certain Chinese investment activities here. In November, Ottawa ordered Chinese state-owned companies to immediately divest from three Canadian critical mineral companies over national security concerns. The government has also proposed changes that would require foreign investors to notify the government before closing deals in sectors that give them access to sensitive data, IP or trade secrets. Teachers’ decision doesn’t mean it’s pulling out of the market completely, however. “China has a role to play in our robust portfolio construction approach,” Dan Madge, a spokesperson for the fund, told The Logic by email, adding that it plans to continue investing in publicly listed companies in the country and private investments through fund partners.