The main pension plan for US federal government employees has rejected a request from US lawmakers to drop its investment in an MSCI index that includes Chinese companies accused of supporting Beijing’s military and domestic security apparatus.
The decision by the Federal Retirement Thrift Investment Board was seen as a test of the extent to which the trade war between the US and China was spreading to capital markets and investment flows.
It suggests that China hawks in Congress are still facing an uphill battle when it comes to cutting the ties binding Wall Street with the expanding Chinese market.
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