Asset management giant BlackRock and index provider MSCI are reportedly being investigated by US authorities for allegedly facilitating investments into blacklisted Chinese companies.
BlackRock and MSCI are being investigated by the House of Representatives’ Select Committee on the Chinese Communist Party, according to a «Wall Street Journal» report citing a letter from the US congressional committee. The two firms are allegedly facilitating flow of American capital into dozens of blacklisted companies accused of fuelling China’s military advancement or human rights abuses.
BlackRock denied any wrongdoing and said that it complies with all applicable US government laws and will engaging the committee directly on issues raised. MSCI said it was «revving the inquiry» from the committee.
Although the committee does not write legislation, it makes policy recommendations and also has the power to subpoena executives or officials.
