OAN’s Noah Herring
5:10 PM – Wednesday, August 2, 2023
The House Select Committee on Strategic Competition between the United States and the Chinese Communist Party (CCP) have announced that they are launching an investigation into BlackRock, the world’s largest asset manager, and MSCI, one of the world’s largest providers of index funds.
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The committee reportedly sent letters to BlackRock CEO Larry Fink and MSCI CEO Henry Fernandez on Monday notifying them that it is launching an investigation regarding their affairs with certain Chinese companies.
“Our review has shown that, as a direct result of decisions made by MSCI, these Americans are now unwittingly funding PRC companies that develop and build weapons for the People’s Liberation Army (PLA)—the PRC’s military—and advance the CCP’s stated mission of technological supremacy,” wrote the Select Committee’s Chairman, Rep. Mike Gallagher (R-Wis.), and its ranking member, Rep. Raja Krishnamoorthi (D-Ill.).
The letter further indicated that by sending large amounts of money to companies linked to the Chinese military and human rights abusers, BlackRock and MSCI are “exacerbating an already significant national security threat and undermining American values.”
The committee claimed that BlackRock invested more than $429 million across five funds linked to Chinese companies that “act directly against the interests of the United States.”
They also found at least 40 companies listed on the MSCI indexes that are on governmental “red-flag” lists.
“The majority of our clients’ investments in China are through index funds, and we are one of 16 asset managers currently offering U.S. index funds investing in Chinese companies,” BlackRock said in a statement. “With all investments in China and markets around the world, BlackRock complies with all applicable US government laws. We will continue engaging with the Select Committee directly on the issues raised.”
MSCI indicated that they have complied with all U.S. laws and are currently in the process of reviewing the committee’s request for information.
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By: OAN
