An initial review by the committee had found the companies allow for investments into dozens of blacklisted companies.
A U.S. congressional committee on China is investigating asset management giant BlackRock (BLK.N) and index provider MSCI (MSCI.N), saying they were facilitating investments into blacklisted Chinese companies, underscoring how tense relations between the two countries are rippling out into corporate America.
The firms have facilitated the flow of American capital into companies the U.S. government had found guilty of fueling China’s military advancement or human rights abuses, the House of Representatives’ Select Committee on the Chinese Communist Party (CCP) said in letters dated Monday and seen by Reuters on Tuesday.
BlackRock denied any wrongdoing. “With all investments in China and markets around the world, BlackRock complies with all applicable U.S. government laws. We will continue engaging with the Select Committee directly on the issues raised,” the firm said on Tuesday.
Shares in BlackRock were down 0.8% in mid-afternoon trade, underperforming the main stock indexes.
MSCI said on Tuesday it was “reviewing the inquiry” from the committee.
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