“China cheats outside investors as a matter of policy, and there is no excuse for allowing Chinese companies to be part of American stock exchanges any longer. What’s more, all doubt has been removed that Chinese investments should be purged from all pension and other federal government sanctioned retirement funds as they are clearly unsuitable under the standards set under the Employee Retirement and Investment Securities Act (ERISA). In addition, every state and locality should examine their holdings, removing exposure to Chinese investments in order to protect their taxpayer interests from equities and bonds which are only as good as the Chinese Communist Party says they are.
“While the national security issues with investments in Chinese multi-nationals have been obvious for a while, the Wall Street Journal has reported on a new study which outlines a number of instances where well-connected Chinese investors jumped to the head of the line to take advantage of news that caused stocks to rapidly decline in what would be prosecutable insider trading within the United States. If hedge funds and other riskier investment managers wish to play Chinese roulette with their shareholders money, these investments are no place for retirement funds. It is time for the Labor and Treasury Departments to protect American retirees by banning non-transparent Chinese investments.”
For media availability contact Americans for Limited Government at 703-383-0880 or media@limitgov.org.
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