A look into how funds that track major indexes could be investing in companies with controversial links in China.
An electronic screen in Shanghai displaying the Shanghai Composite Index, the Shenzhen Component Index and the Hang Seng Index, December 5, 2023. Credit: VCP via AP Images
As the U.S. government mulls restrictions on outbound investment into China, a particular area of controversy is financial products through which millions of ordinary investors funnel billions of dollars into the country — index tracker funds.
Such funds enable those who put money into them to track the fortunes of a particular index, like the S&P 500. The funds do this by investing their assets into the companies in proportion to the weighting that each stock has in that index.
Data
Exclusive longform investigative journalism, Q&As, news and analysis, and data on Chinese business elites and corporations. We publish China scoops you won't find anywhere else.
A weekly curated reading list on China from Andrew Peaple.
A daily roundup of China finance, business and economics headlines.
We offer discounts for groups, institutions and students. Go to our Subscriptions page for details.
The economic policy maker says the Trump administration's actions could threaten the greenback's role, and discusses the big bet the U.S. made in welcoming China into the WTO.
Stay ahead of U.S. export rules. Comply with the new 50% ‘Affiliates Rule.’
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OKPrivacy policy
