BlackRock, MSCI draw scrutiny from US congressional committee over capital flow to blacklisted Chinese companies
- The firms helped American capital flow to companies the US blacklisted for human-rights abuses or fuelling China’s military advancement, committee says
- BlackRock denied wrongdoing, and MSCI said it was reviewing the inquiry from the House of Representatives’ Select Committee on the CCP
A United States congressional committee on China is investigating asset-management giant BlackRock and index provider MSCI, saying they were facilitating investments into blacklisted Chinese companies, underscoring how tense relations between the two countries are rippling out into the corporate world.
The firms have facilitated the flow of American capital into companies the US government had found guilty of fuelling China’s military advancement or human rights abuses, the House of Representatives’ Select Committee on the Chinese Communist Party (CCP) said in letters dated Monday and seen by Reuters on Tuesday.
BlackRock denied any wrongdoing. “With all investments in China and markets around the world, BlackRock complies with all applicable US government laws,” the firm said on Tuesday. “We will continue engaging with the Select Committee directly on the issues raised.”
Shares in BlackRock fell, underperforming the main stock indexes.
MSCI said on Tuesday it was “reviewing the inquiry” from the committee.
