The U.S. is telling colleges to avoid Chinese stocks. Here’s why
The spotlight fell on Chinese investments held by U.S. colleges this week as the White House looks to untangle the intricate financial ties between deep-pocketed money managers and Chinese companies.
A senior official in the Trump administration warned colleges against investing in Chinese stocks on Tuesday in order to avoid measures that could see such equities listed within the U.S. kicked out of domestic stock exchanges.
“Boards of U.S. university endowments would be prudent to divest from People’s Republic of China firms’ stocks in the likely outcome that enhanced listing standards lead to a wholesale de-listing of PRC firms from U.S. exchanges by the end of next year,” said Keith Krach, undersecretary for economic growth, energy and the environment, in a letter to colleges.
