This isn’t news to anyone who pays attention to financial news cuz there are so many ways around “rules”….Larry and his co-Horta know them all and since it’s SRI ain’t no one ever look until we’ll after. Make billions then pay millions in fines. …SOP
Wall Street channeled billions to blacklisted China firms: U.S. probe
Major U.S. financial institutions helped steer billions of dollars into Chinese companies blacklisted for their association with China's military or alleged human rights abuses, a congressional committee investigation has found.
A report released Thursday, compiled by a House committee in charge of crafting strategies to counter China, found that $6.5 billion was funneled last year through index funds to 63 Chinese companies blacklisted or red-flagged by the U.S. government.
"Through the products of our own financial industry, Americans' hard-earned savings and retirement money are supporting the military modernization of a foreign adversary and the development of tools used by the CCP [Chinese Communist Party] to violate human rights," the report said. Chinese companies receiving investor cash included Aviation Industry Corp. of China, a defense conglomerate that produces aircraft for the People's Liberation Army, and Daqo New Energy Corp., a company associated with Uyghur forced labor.
The investigation looked into the broader financial industry but took particular aim at BlackRock, the world's largest asset manager, and MSCI, the major index provider.
The report comes eight months after the committee notified BlackRock and MSCI of the congressional probe.
Asset managers like BlackRock use indexes from providers like MSCI to create investment portfolios for retirement funds and other institutional endowments. Companies and their subsidiaries and affiliates that are named on U.S. government blacklists can make their way into these indexes, receiving U.S. investments.
https://asia.nikkei.com/Politics/Wall-Street-channeled-billions-to-blacklisted-China-firms-U.S.-probe