February 7, 2025 - Attorney General Miyares Demands Answers On Major Asset Managers’ Ties to China

Attorney General Miyares Demands Answers On Major Asset Managers’ Ties to China 

RICHMOND, VA — Virginia Attorney General Jason Miyares joined a 17-state coalition demanding answers from the world’s top asset managers regarding potential misrepresentations and omissions about the risks of investing in China.

In a letter sent Thursday to BlackRock, State Street, Invesco, JPMorgan, Goldman Sachs, and Morgan Stanley, the attorneys general raise concerns that these firms may be misleading investors about the risks associated with Chinese investments. Despite China’s status as a foreign adversary of the United States, some asset managers falsely equate investing in China with investing in other markets, ignoring the unique economic, political, and national security threats that come with it. Failing to fully disclose these risks may violate the asset managers’ fiduciary duty to investigate investments thoroughly and could run afoul of state securities laws and consumer protection statutes. 

Beyond concealing the risks of investing in a foreign adversary, BlackRock has also failed to disclose China’s intentions toward Taiwan and the possibility that the Chinese Communist Party (CCP) could arbitrarily declare the corporate structure of certain investments illegal. Worse, BlackRock has downplayed China’s ongoing human rights abuses, dismissing the ongoing Uyghur genocide and forced labor as mere “religious and nationalist disputes.” 

The CCP actively suppresses accurate financial information and manipulates stock markets. Yet, rather than disclose these realities to shareholders, BlackRock simply states that Chinese audits “do not meet U.S. standards.” Furthermore, despite China emitting more CO2 than the U.S., Europe, and Japan combined and engaging in systemic human rights abuses, BlackRock gives its all-China fund the same Environment, Social, and Governance (ESG) rating as its U.S. small-cap stocks fund.  

“BlackRock and other asset managers have a duty to be honest with investors, not act as apologists for the Chinese Communist Party. The CCP manipulates markets, suppresses financial transparency, and commits egregious human rights abuses—yet these firms downplay the risks and push Chinese investments as if they were no different from any other market. That’s unacceptable. American investors deserve the truth, not CCP-approved talking points,” said Attorney General Jason Miyares. 

The coalition of attorneys general is also investigating whether these firms’ involvement in Chinese investments conflicts with their duty of loyalty to their clients. For example, BlackRock aggressively promoted Chinese investments worldwide shortly after receiving the CCP’s approval to operate in China—despite China being designated a U.S. foreign adversary just months prior. These recommendations have led to significant investor losses and may constitute a breach of BlackRock’s fiduciary duty.  

The attorneys general argue that these misstatements and omissions either stem from conflicts of interest—due to China’s pressure on firms seeking access to its markets—or an inability to conduct independent due diligence given CCP interference and market distortions. 

To aid in ongoing investigations, Attorney General Miyares is demanding that the asset managers provide detailed answers regarding their Chinese investments by March 10.  

Joining Virginia in the Montana-led letter include the attorneys general of Alabama, Idaho, Indiana, Iowa, Kansas, Mississippi, Missouri, North Dakota, Oklahoma, Ohio, South Carolina, South Dakota, Texas, West Virginia, and Wyoming.

Read the letter here. 

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