Investors are steering clear of China so much that Blackrock is pulling the plug on its China fund.
The investment management giant announced the news in a Tuesday letter to shareholders saying it would shut down its China Flexible Equity Fund in November.
The fund has had a six-year run, but has only totaled over $22 million in assets since 2017.
Its chair explained the closure comes due to a poor forecast for future investment in the fund. She also cited that the upkeep costs for the small fund would go against what’s best for investors.
The decision leaves current shareholders with a few options.
They can opt to transfer their investments to another Blackrock fund and cash in before the fund’s Nov. 7 shutdown date or have their holdings automatically redeemed when the fund closes.
The shutdown arrives against the backdrop of a tense China investment climate. The firm faced a U.S. probe in August exploring national security concerns over investments in certain Chinese entities.
That investigation led financial giants to expect tighter regulation on foreign investment. Especially after July when the House Select Committee on the Chinese Communist Party accused Blackrock of funding Chinese companies that harm American interests.
President Joe Biden also signed an executive order last month limiting American investment in Beijing’s technology industry.