WASHINGTON (Pakistan Point News / Sputnik - 01st August, 2023) The US House Select Committee on the Chinese Communist Party has notified Blackrock and MSCI that it is investigating them for facilitating US investment in Chinese companies with alleged military links and human rights violations, The Wall Street Journal reported in Tuesday, citing copies of the letters.
The firms are "exacerbating an already significant national-security threat and undermining American values" by routing "massive flows of American capital" to such companies in China, the letters said.
The committee said that a review found the firms were funding more than 60 Chinese companies flagged by the US government, with BlackRock investing more than $429 million across five funds in such companies.
It asked each firm to fully account for all Chinese companies they were investing in or including on indexes and to report on the due diligence conducted.
