- The House of Representatives Select Committee on the Chinese Communist Party stated BlackRock invested more than $420 million into blacklisted Chinese companies.
- The world’s biggest asset manager denied the allegations stating it “complies with all applicable US government laws”.
- Earlier last month, the Securities and Exchange Commission accepted BlackRock’s spot Bitcoin ETF application.
The United States has been the center of attention recently for its economic conditions as well as foreign relations. The worsening situation with China now seems to have become so intolerable that the authorities are going after companies in their own country, with BlackRock being the most prominent example.
BlackRock to be investigated
The world’s biggest asset management firm, BlackRock, along with index provider MSCI, is set to be investigated by US authorities. According to the House of Representatives Select Committee on the Chinese Communist Party, both companies have been investing in Chinese firms that are blacklisted by the US.
These Chinese companies have been associated with advancing the military prowess of the Asian country, and according to the Select Committee, BlackRock and MSCI were fueling this advancement.
The American capital flowing into these organizations would, in turn, prove to be dangerous to national security, is the concern raised by the Select Committee. However, BlackRock denied any wrongdoing stating,
“Like many global asset managers, BlackRock offers our clients a number of strategies to invest in or exclude China from their portfolios. The majority of our clients’ investments in China are through index funds, and we are one of 16 asset managers currently offering US index funds investing in Chinese companies.
The company went out to state that all investments in China, similar to any other country, are in compliance with all applicable US government laws.
China and USA are two of the biggest economies in the world, and an economic dispute could prove to be harmful to both nations. Reiterating the same, a spokesperson from China’s embassy in a statement to Reuters said,
“Overstretching the concept of national security and politicizing economic, trade and investment issues runs counter to the principles of market economy and international trade rules.
The deepening dispute has intensified the dedollarisation in the East and Asian countries, which has opened up opportunities for alternative currencies such as crypto to further their dominance. This advancement is reflected in America, with BlackRock being one of the many companies to file for spot Bitcoin ETF recently.
The Securities and Exchange Commission, after some initial dissension, accepted the ETF flings, adding them to the regulator’s dockets.
Read more - COIN price shoots up by 10% as BlackRock and CBOE refile Bitcoin ETFs, partnering with Coinbase
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.