State AGs Accuse Fund Managers of Downplaying China Investment Risks

‘This is not a place where we should be investing U.S. dollars, and especially U.S. pension dollars,’ Montana’s attorney general said.

A screen displays (from top) the Hang Seng Index, Hang Seng China Enterprises Index, Hang Seng Tech Index, and MSCI China Index in Hong Kong on March 15, 2022. Paul Yeung/Bloomberg via Getty Images

Attorneys general from 17 states issued a warning letter to BlackRock and other fund managers, alleging that they failed to fully disclose the risks for clients investing in Chinese companies. 

The letter, dated Feb. 6, was issued to BlackRock, State Street, Invesco, Morgan Stanley, JPMorgan and Goldman Sachs.