According to the global times, the federal retirement savings and Investment Commission, which manages nearly $600 billion in pensions for millions of federal employees, including parliamentarians, White House officials and soldiers, decided to invest in international index funds, including Chinese listed companies, on the 13th.
The federal retirement savings and Investment Commission said on Wednesday that it would start tracking a benchmark index including Chinese listed companies.
American people's choice
In a letter to senators, chairman Kennedy of the federal retirement savings and Investment Commission wrote:
"Investing in emerging markets is not only legal, but also the overwhelming choice of Trustees in various industries, but also the choice of the American people." Investors in the United States and the world have recently shown their concern for the Chinese market in various research reports and investment surveys. BlackRock, the world's largest asset management company, released its latest investment report on the 14th, saying: "if China is excluded from investment, what will be missed will be the explosive growth potential of this market."
The U.S. Congress passed a bill in 1986 to establish a 'thrifty savings plan' (TSP) to provide federal employees with pension savings and investment services similar to the 401 (k) plan of employees in private enterprises.
Reuters said that the federal retirement savings and Investment Commission had previously invested in the MSCI European Oceania Far East index, which mainly tracks the stock markets of developed countries, but the return was poor. At the suggestion of AON Hewitt, the hired consulting firm, the committee decided to transfer the investment to a more diversified portfolio and invest in emerging markets with better performance than developed countries according to Mingsheng global investable market index. In this index, China's market weight accounts for about 8%.
The dispute has been going on for months
In fact, the dispute between the federal retirement savings and Investment Commission and Anti China lawmakers has lasted for several months.
The federal News Network said that among the five directors of the federal retirement savings and Investment Committee, four supported the plan, and only one proposed to postpone it.
Board member bilyo said that as an investment trustee with 5.5 million federal employees, we must make decisions that are in the best interests of most clients. At present, the top 10 U.S. listed companies and the top 10 federal contractors provide their quota investment participants with the opportunity to invest in emerging market stocks including China. 'the existence of the board of directors is to meet the interests of most participants, and the Committee has no responsibility to solve some political problems. That's the matter of the foreign assets control office of the Ministry of Finance '.
"The risk of not investing in China is very high"
U.S. and world investors have recently shown their favor for the Chinese market and their concern about the U.S. economic recession in various research reports and investment surveys.
"The risk of not investing in China is very high." Japan economic news recently reported a public speech by Dalio, the founder of Bridgewater, the largest hedge fund in the United States.
Dalio said that there are great risks in the U.S. and European economies. If you want to spread risk, you need to invest in various markets. He particularly stressed the importance of investing in China. Reuters quoted senior market analyst Bernstein as saying on November 6 that the 10-year expansion of the U.S. economy has come to an end. He urged investors to turn their attention to China with higher return on investment.
Explosive growth potential
On the 3rd, BlackRock, the world's largest asset management company, released its latest investment report. In the report entitled "China's investment opportunities are too big to be ignored", the giant in charge of trillions of dollars used "explosive" to describe China's development and investment potential.
The report said that China is long because China's rapid development, productivity improvement and increasingly prominent domestic demand have given global investors new opportunities. "The largest part of global growth in the next 40 years may be brought by Chinese consumers.".
The report emphasizes that although China will inevitably encounter challenges in its development, China is drawing an investment blueprint for global investors. " If China is excluded from investment, what will be missed will be the explosive growth potential of this market. "