For too long, ETF issuers and index providers have funneled billions of dollars of American investor money out of the U.S. capital markets and into fraudulent companies controlled by the Chinese Communist Party.
WASHINGTON – The American Securities Association (ASA) welcomed an announcement from MSCI Inc. removing several Chinese companies blacklisted by the U.S. government from its indexes.
“For too long, ETF issuers and index providers have funneled billions of dollars of American investor money out of the U.S. capital markets and into fraudulent companies controlled by the Chinese Communist Party,” said ASA CEO Chris Iacovella. “ASA has long advocated for index providers to protect investors by removing opaque Chinese companies from their indexes, and we welcome this positive first step by MSCI to do so. But it’s not enough, regulators should force all index providers to remove every Chinese company that fails to comply with basic auditing and disclosure requirements from any index fund offered to American investors.”
In October of 2019, ASA called on ETF issuers and index providers to remove fraudulent Chinese companies from their investment offerings. Last week, ASA applauded the leadership of the London Stock Exchange Group (LSEG) for taking action to protect investors by removing blacklisted Chinese companies from several of its FTSE Russell indexes. ASA also recently hailed passage of the Holding Foreign Companies Accountable Act, a bill sponsored by Sens. Kennedy and Van Hollen to kick fraudulent Chinese companies off U.S. exchanges.
ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at http://americansecurities.org/.