House Committee Releases Report on Index Providers and Asset Mangers Investment in Chinese Companies

In April, the House Select Committee on the Chinese Communist Party issued a report detailing how certain index providers and asset managers facilitated investment to Chinese companies. The report found that in 2023, certain financial institutions provided $6.5 billion to 63 Chinese companies that the U.S. government either blacklisted or red-flagged because they advance China’s military capabilities or support China’s human rights abuses. The report issued three recommendations:

1. Enact legislation to prohibit investment in Chinese companies on key U.S. government sanctions and red-flag lists blacklisted by the U.S. government, including subsidiaries, affiliates, and parent and holding companies of those listed entities.
2. Require U.S. public companies to disclose key risks related to the People’s Republic of China (PRC).
3. Ensure the U.S. financial system is resilient to PRC market uncertainty.

The Select Committee is led by Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL). The Committee’s goal is “countering Chinese Communist Party aggression and promoting American strength around the world.”

Click here to read the House Select Committee’s report on investment in Chinese corporations.