(Reuters) – A congressional investigation discovered that Wall Road used billions of {dollars} of American retirement financial savings and different investments to purchase shares in index funds that included a number of blacklisted Chinese language corporations, the Wall Road Journal reported on Thursday.
The probe, performed by a bipartisan Home committee empowered to plot methods for the U.S. to counter China, targeted on world’s largest asset supervisor BlackRock and index supplier MSCI, the report stated.
BlackRock and MSCI didn’t instantly reply to Reuters requests for remark.
Ties between the U.S. and China, the world’s two largest economies, have been strained in recent times resulting from points together with Taiwan, the origins of the COVID-19 pandemic, allegations of spying, human rights points and commerce tariffs.
The Home Choose Committee on the Chinese language Communist Get together concluded that by investments in index funds, American monetary establishments funneled $6.5 billion final yr to some 63 Chinese language corporations flagged by the U.S., the report stated.
The committee couldn’t be instantly reached for a remark.
(Reporting by Mehnaz Yasmin in Bengaluru; Modifying by Arun Koyyur)