As the relationship between the two countries has deteriorated since 2020, a new analysis has shown that Washington’s proposals to crack down on Beijing despite the ongoing tensions have been undermined by US pension funds’ continued investments in China. According to the ‘Rubicon Report’ by Future Union, a bipartisan non-profit organization, public pension funds in 43 US states have investments in China and Hong Kong. It also stated that over the last 36 months, US-based public pension funds have invested more than $68 billion in China.
Future Union named some of the largest allocators, including the California Public Employees’ Retirement System, which has made 80 investments totaling $7.86 billion; the San Francisco Employees’ Retirement System, which has invested $3.38 billion over 80 investments; and the San Francisco Employees’ Retirement System, which has invested $3.38 billion over 80 investments.
The New York State Common Retirement Fund has invested $8.39 billion across 72 investments, while the California State Teachers’ Retirement System has invested $5.56 billion across 58 investments.
“In the past 12 months, 24 investments alone have been made, which should be acknowledged as support for the technological advancement of China,” the report said.
According to the Future Union report, various US public pension funds have a total investment of more than $73.28 billion in Chinese stocks.
Future Union executive director Andrew King expressed concern about the investment, telling the New York Post, “The threat posed by China to America’s national security is clear, yet the managers of our retirees’ pensions and university endowments continue to feign ignorance and rue accountability, undermining America’s national interests.”
“That must end right now,” he added.
Private university funds make undisclosed investments in China, non-profit reveals
According to the non-profit report, some private university funds have also made questionable investments, but the total amount is unknown as they do not have the same reporting requirements as public institutions.
However, major university funds made significant investments, including $155 million from Princeton, $80 million from Stanford, $50 million from Yale, $22 million from the Massachusetts Institute of Technology, and $10 million from Carnegie Mellon.
Mr. King, on the other hand, stated that not every investment is directed toward illegal activity and that many institutions are unaware that their funds are being invested in the Chinese market.
“Not every fund is a villain, and this report highlights the pensions, endowments, and non-profit funds that are leading on this issue. Others should follow their lead and take meaningful action,” he added.
According to Mr. King, investing in Chinese stocks is appealing because Beijing tightly controls its market and can artificially inflate returns.
