HONG KONG (Reuters) -Global venture capital giant Sequoia announced Tuesday that it is planning to separate China and India and Southeast Asia businesses into independent firms.

In a statement signed by the firm’s managing partners Roelof Botha, China head Neil Shen and India head Shailendra Singh, Sequoia said the China and India and Southeast Asia businesses will become completely independent partnerships and become distinct firms with separate brands no later than March 31, 2024.

The firm’s US and Europe venture business will be Sequoia Capital, after the separation, the statement said.

Sequoia’s move to end its long-term partnership of local leaders in China, India and Southeast Asia comes amid macroeconomic and geopolitical challenges that have made fundraising difficult and eaten into venture funds’ returns.

Investing into China by global investors, in particular, has slowed down significantly as the world’s second largest economy is grappled with economic woes post COVID-19 pandemic and tightened regulatory oversight that stymied growth in the technology and internet sectors.

Sequoia China will retain its current Chinese name and adopt the name HongShan in English, while Sequoia India and Southeast Asia will become Peak XV Partners, the firm said.

(Reporting by Kane Wu and Julie Zhu, Editing by Louise Heavens)