Vanguard Group Inc. is taking the final steps to pull out of China and shut its presence in the 29 trillion yuan ($4 trillion) mutual fund market.
Apparently, Vanguard is changing its strategy, leaving the world’s second largest economy in which it once saw significant potential.
This comes amid the measure of foreign investment in China turning negative for the first time since records began in 1998, highlighting a significant withdrawal of funds by foreign companies.
It was also reported earlier in the year that the China’s stock market was experiencing an unprecedented downturn.
At the same time, Chinese media first announced the company’s planned exit in March 2023.
With Vanguard having $7.1 trillion in assets under management globally, it makes one wonder how the withdrawal of such a giant affected the country’s stock market within a year.