MSCI

Congressional scrutiny over Wall Street’s role in financing Chinese military companies has been on the rise.

“MSCI and BlackRock have directed investment in companies that produce the Chinese Communist Party’s military aircraft, its aircraft carriers, its aerospace technology, its artillery shells, even advanced nuclear technology,” says Rep. Mike Gallagher.

The world’s largest asset manager and leading index provider are facing congressional probes for facilitating American dollars into Chinese companies that the United States has deemed to be fueling Chinese military growth or human rights abuses.

One of China’s biggest drugmakers said it overstated its assets by $4.4 billion, calling into question the quality and standard of accounting at Chinese listed companies.