Singapore’s sovereign wealth fund GIC has put the brakes on private investments in China as it steps up scrutiny of risks in the world’s second-biggest economy.GIC, one of the world’s largest investors in private equity funds, has scaled back commitments to China-focused private equity and venture capital funds over the past year, five people with knowledge of the matter said. It has also significantly slowed the pace of its direct investments in private Chinese companies.

Although GIC was an early backer of China’s economic growth story, some of the fund’s most senior figures have struck a more cautious tone on investing in the country during internal discussions over the past year, two of the people said.

The fierce debate inside one of Asia’s most powerful sovereign wealth funds reflects concern over how some of Chinese president Xi Jinping’s policies might affect investors despite the end of “zero-Covid” curbs that hit growth last year.