The bill would prohibit index funds from investing in companies that meet its definition of a Chinese company. This includes funds designed to track all or part of a securities index, including certain investment companies and hedge funds. Funds with existing investments would have 180 days after enactment to divest before the prohibition applies to those investments. Violations could result in a civil penalty of up to $250,000 or twice the value of the transaction, whichever is greater. The Securities and Exchange Commission may issue rules to carry out the prohibition.
If you manage an index fund covered by the bill, you would be barred from investing in Chinese companies and would have 180 days to divest existing investments. The bill does not describe specific effects on individual investors.
The bill does not state implementation costs. A violation could result in a civil penalty of up to $250,000 or twice the value of the transaction, whichever is greater.
No publicly available information.
No publicly available information.