U.S. House Committee on China Investigates BlackRock, MSCI

The U.S. Congress committee on China is looking into BlackRock (BLK:US), the world’s largest asset manager, as well as index provider MSCI due to their alleged suspicious activities with blacklisted Chinese companies, Reuters reported.

According to the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, these two firms have channeled the flow of American capital into blacklisted companies. Some of these companies are working with China’s military and are involved in human rights abuses.

"The true scale is likely much larger," the committee wrote in a letter seen by Reuters.

In response to Reuters’ report, BlackRock denied these allegations.

"With all investments in China and markets around the world, BlackRock complies with all applicable U.S. government laws. We will continue engaging with the Select Committee directly on the issues raised.”

The Select Committee was established earlier this year by the Republicans. While the Committee doesn’t write bills, it still offers policy recommendations.

The Committee consists of 24 members, including the majority 13 coming from the Republican party, including Chairman Mike Gallagher (WI).