{"id":2026957,"date":"2023-09-09T19:00:01","date_gmt":"2023-09-09T23:00:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/blackrock-closes-china-equity-fund-after-congressional-probe\/"},"modified":"2023-09-09T19:02:23","modified_gmt":"2023-09-09T23:02:23","slug":"blackrock-closes-china-equity-fund-after-congressional-probe","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/blackrock-closes-china-equity-fund-after-congressional-probe\/","title":{"rendered":"BlackRock shuts China Equity Fund following Congressional investigation."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fblackrock-closes-china-equity-fund-after-congressional-probe%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2026957&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>BlackRock to Shut China-Focused Offshore Fund Amid Congressional \u2062Scrutiny<\/h2>\n<p>World\u2019s largest money manager BlackRock is shutting a China-focused offshore fund\u200c amid congressional scrutiny\u2062 over\u200c its alleged role \u200din directing \u2062U.S. dollars to blacklisted Chinese firms.<\/p>\n<p>In a recent letter to shareholders, BlackRock Global \u200dFunds\u2019 chairwoman Denise Voss said they \u200cwill close the China Flexible \u200cEquity Fund \u2063over a\u2062 \u201clack of shareholder interest\u201d\u200b and \u2063the investment cost \u200dto keep the \u2064fund running, which she noted \u2062is \u201cnot in the best interests of shareholders.\u201d<\/p>\n<p>BlackRock\u2063 intends to liquidate all assets under the fund and redeem any\u200d outstanding \u2062shares by \u2063Nov. \u200b7. Existing shareholders have the options \u2063to switch their \u200cinvestments into another fund,\u2063 sell back their shares ahead of the liquidation date, or receive automatic payments \u2064for the shares when \u200bthe fund closes down.<\/p>\n<blockquote>\n<h3>Related Stories<\/h3>\n<ul>\n<li>\n      <a href=\"http:\/\/www.theepochtimes.com\/article\/biden-admin-is-killing-chinas-high-tech-ambitions-5487835\">How the Biden Admin Is Killing China\u2019s High-Tech\u200d Ambitions<\/a><\/p>\n<p class=\"text-comp-caption\">9\/7\/2023<\/p>\n<\/li>\n<li>\n      <a href=\"http:\/\/www.theepochtimes.com\/world\/g20-countries-reach-agreement-on-joint-statement-averting-crisis-at-new-delhi-summit-5488866\">G20 Countries Reach Agreement on Joint Statement, Averting Crisis at New Delhi Summit<\/a><\/p>\n<p class=\"text-comp-caption\">9\/9\/2023<\/p>\n<\/li>\n<\/ul>\n<\/blockquote>\n<p>Launched in\u2063 October 2017, China Flexible Equity Fund has an\u200b asset value\u2062 of around $21.4 million as of late August after \u200ba six-year run. It <a href=\"https:\/\/www.blackrock.com\/ch\/individual\/en\/products\/291539\/blackrock-china-flexible-equity-fund\" target=\"_blank\" rel=\"noopener\">recorded<\/a> a negative 16.7\u200b percent \u200dreturn in 2021, a number that nearly doubled \u200cin 2022, to negative \u200b30.5 percent.<\/p>\n<p>The \u200bfund closure came just a month after the House Select Committee on \u2062the Chinese Communist \u2063Party <a href=\"https:\/\/www.theepochtimes.com\/us\/blackrock-msci-draw-congressional-scrutiny-for-china-investments-5438092\" target=\"_blank\" rel=\"noopener\">launched a\u2064 probe<\/a> into BlackRock and investment index provider MSCI regarding the alleged investments in Chinese companies the U.S. government has\u200b deemed problematic.<\/p>\n<p>The\u2064 two firms\u2064 together facilitated investment into\u2063 over 60\u200b Chinese entities hit\u2063 with U.S. sanctions over national security \u200cor human rights\u200b issues, the lawmakers \u2062said,\u200d noting their\u2063 review was far from comprehensive \u200band thus the actual number of benefited Chinese companies is likely higher.\u200c Across\u2064 five funds, \u2063BlackRock has invested over $429 million in such Chinese \u200dfirms \u200bagainst\u2064 U.S. interests, according to the House \u200bcommittee.<\/p>\n<div class=\"shortcode post-related-videos\">\n<div class=\"lazyload-wrapper\">\n<div class=\"lazyload-placeholder\"><\/div>\n<\/p><\/div>\n<\/div>\n<p>Some of the top \u200binvested Chinese entities for\u2063 China\u2062 Flexible Equity Fund include Tencent, a Chinese state-backed tech giant that had <a href=\"https:\/\/www.theepochtimes.com\/china\/china-exerts-influence-in-us-through-tiktok-and-wechat-expert-says-4111260\" target=\"_blank\" rel=\"noopener\">aided<\/a> Beijing in silencing dissent and spreading propaganda through its \u2064popular messaging app \u200bWeChat, as \u2064well as state-owned hydropower operator China Yangtze\u200d Power and Nari Technology, the country\u2019s \u200dlargest supplier of electric power \u200dequipment.<\/p>\n<p>In a response to the congressional\u200c probe,\u200b BlackRock had told The Epoch Times \u200dthat it &#8220;complies with all applicable U.S. government laws&#8221; regarding &#8220;all investments in China and markets around the world,&#8221; and noted\u2063 that it is one of 16 asset managers offering U.S. index funds that invest \u2063in Chinese companies.<\/p>\n<p>It didn\u2019t immediately respond to a request\u2064 for comment \u200cregarding the\u2062 China fund closure.<\/p>\n<p>But across\u200b the\u200c board, there are growing \u2062signs of wariness from U.S. investors toward the Chinese market. \u2062The long-hoped-for economic recovery after the \u200dregime lifted its stringent COVID-19 curbs has not happened. Instead, the country faces a slowing economy, with a sharp drop in\u2064 trade, millions of young Chinese\u2062 struggling to find a job, a housing crisis, and growing tensions with the United States.<\/p>\n<p>In August, President Joe Biden <a href=\"https:\/\/www.theepochtimes.com\/us\/biden-to-bar-some-investments-in-china-citing-national-security-5454903\" target=\"_blank\" rel=\"noopener\">signed<\/a> \u2064 an executive order to restrict U.S. investments toward China in \u2064advanced\u2064 technologies such as artificial intelligence, quantum technology, and semiconductors, citing\u2063 risks for U.S. \u200bnational security.<\/p>\n<p>For a U.S. investor,\u2063 \u201cthere is\u2063 nothing bigger than the current trade \u200btensions between the \u2062U.S. and\u2063 China,\u201d Gary\u2063 Dugan, \u2064<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-plans-to-unveil-advisory-warning-for-americans-doing-business-with-deteriorating-hong-kong\/\" title=\"Biden Plans To Unveil \u2018Advisory\u2019 Warning For Americans Doing Business With \u2018Deteriorating\u2019 Hong Kong\">chief investment officer<\/a> at the UAE-based Dalma Capital, a\u200b <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-china-tech-freeze-worries-us-investors-startups\/\" title=\"US investors and startups concerned about the US-China tech freeze.\">global alternative investment platform<\/a> and an avid\u200c China investor,\u200c <a href=\"https:\/\/www.theepochtimes.com\/china\/us-china-tech-freeze-worries-us-investors-startups-5485973\" target=\"_blank\" rel=\"noopener\">told<\/a> The Epoch Times.<\/p>\n<p>China\u2019s regulatory \u2064environment\u2064 also presents increasing\u2064 challenges to foreign investors. China in July officially\u2064 <a href=\"https:\/\/www.theepochtimes.com\/china\/china-expands-anti-espionage-law-targeting-foreign-companies-and-dissidents-5231061\" target=\"_blank\" rel=\"noopener\">expanded<\/a> an anti-espionage law that could <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/blackrock-closes-china-equity-fund-after-congressional-probe\/\" title=\"BlackRock shuts China Equity Fund following Congressional investigation.\">criminalize regular business activities<\/a>. Authorities this\u2064 year \u200chave also ordered a raid on <a href=\"https:\/\/www.theepochtimes.com\/china\/chinese-authorities-question-staff-of-us-consulting-firm-bain-5225289\" target=\"_blank\" rel=\"noopener\">Bain &#038; Co.<\/a>\u2019s office in Shanghai and due diligence firm \u2064Mintz Group&#8217;s office in Beijing. In \u200dMay, it <a href=\"https:\/\/www.theepochtimes.com\/article\/china-bans-key-projects-from-purchasing-products-by-us-chipmaker-micron-5281705\" target=\"_blank\" rel=\"noopener\">told<\/a> local operators of\u200c &#8220;critical information structure&#8221; to stop buying products from U.S. chipmaker Micron Technology.<\/p>\n<p>&#8220;Increasingly,\u200d I hear from American business that China is uninvestable because it&#8217;s become too risky,&#8221; \u200b <a href=\"https:\/\/www.theepochtimes.com\/article\/us-firms-say-china-has-become-uninvestable-commerce-secretary-says-5482608\" target=\"_blank\" rel=\"noopener\">said<\/a> \u200b Commerce Secretary Gina \u200cRaimondo on Aug.\u2063 29,\u200c during an official visit to China. She \u200csaid she had made 120 to 150 calls with business \u2064and labor leaders in preparing for the trip.<\/p>\n<p>Foreign \u2062i<\/p>\n","protected":false},"excerpt":{"rendered":"<p>firm&#8217;s decision to focus on other investment opportunities. The closure comes as BlackRock faces scrutiny for its alleged involvement in directing U.S. dollars to blacklisted Chinese firms. In a letter to shareholders, chairwoman Denise Voss cited a lack of interest from shareholders as the reason for closing the China Flexible Equity Fund.<\/p>\n","protected":false},"author":361,"featured_media":2026958,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2026957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2026957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/361"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2026957"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2026957\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2026958"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2026957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2026957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2026957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}