China is fast losing its place as must-have in the global portfolios

Years of harrowing losses have left Chinese stocks with a diminished standing in global portfolios, a trend that’s likely to accelerate as some of the world’s biggest funds distance themselves from the risk-ridden market.

An analysis of filings by 14 US pension funds with investments in Chinese stocks shows most of them have reduced their holdings since 2020.

The California Public Employees’ Retirement System and New York State Common Retirement Fund, among the nation’s biggest pension investors, cut their exposure for a third straight year.