BlackRock, Fund Managers Brace for Even More Scrutiny Over China

  • Biden curbed certain investments in Chinese companies
  • Congress targeting money managers’ investments in country

BlackRock headquarters in New York.

Photographer: Michael Nagle/Bloomberg
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BlackRock Inc., MSCI Inc. and other firms are bracing for tighter oversight following a congressional probe over investments in Chinese companies deemed to be national security threats and an executive order curtailing specific investments there.

More than 2,000 US mutual and exchange-traded funds — particularly those tracking indexes — have $294 billion invested across Chinese stocks and bonds, according to data compiled by Bloomberg, though not all of that money is invested in companies facing lawmakers’ scrutiny.