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Home Communities California’s Newest Financial Venture In China: CalPERS Public Employee Pension Fund Invested In Blacklisted Chinese Companies

California’s Newest Financial Venture In China: CalPERS Public Employee Pension Fund Invested In Blacklisted Chinese Companies

Rep. Jim Banks (R-IND) sent California Governor Gavin Newsom a letter this week (below) calling for the investigation of the Chief Investment Officer Yu Ben Meng of the California Public Employees’ Retirement System, the largest public pension fund in the nation, for his “long and cozy relationship with China.”

“The fund has invested $3.1 billion in Chinese companies, some of which have been blacklisted by the U.S. government,” Banks told FOX Business’ Maria Bartiromo.

Banks attended the meeting earlier this week where Secretary of State Mike Pompeo warned “California’s investment fund is invested in companies that supply the People’s Liberation Army (PLA) that puts our soldiers, sailors, Airmen and Marines at risk.” In his letter to Gov. Newsom he said, “CalPERS 2018-2019 report confirms the Secretary’s statement.”

The Commerce Department blacklisted Hikvision in October “for engaging in or enabling activities contrary to the foreign policy interests of the United States.”

Fox Business reported that CalPERS denied it invests in companies blacklisted by the federal Office of Foreign Asset Control. “CalPERS’ investments in Chinese public equity have decreased in recent years to just over one percent of the Fund,” the agency told FOX Business. “These are passive investments made through leading independent index providers. Institutional investors and public pension funds across America use index providers.”

CalPERS defended Meng, calling him a “globally-respected financial expert and a proud citizen of the United States.”

Banks wrote in the letter to the governor that Mr. Meng was hired as Deputy CIO of China’s State Admission of Foreign Exchange (SAFE) in 2015, which is a Chinese Communist Party Agency responsible for managing $3 trillion in state-owned assets.

California Governor Gavin Newsom has not issued a comment regarding the matter.

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