Rubio, Young, Colleagues Press SEC Chairman for Answers on China Evergrande Group

U.S. Senators Marco Rubio (R-FL), Todd Young (R-IN), and colleagues sent a letter to U.S. Securities and Exchange Commission Chairman Gary Gensler stressing the risks that the China Evergrande Group's default and Chinese businesses' financial and accounting practices pose to U.S. investors. The letter also calls for enhanced risk disclosures and due diligence from registered investment funds when considering investments in China.

In addition to Senators Rubio and Young, the letter was signed by Senators Mike Braun (R-IN), Rick Scott (R-FL), and Ted Cruz (R-TX).

"The simple truth is that Chinese companies provide insufficient transparency and accountability," the senators wrote. "Too many U.S. investors--especially passive investors in mutual funds and ETFs that track indexes--are not fully aware of these unseen risks. Accordingly, we urge the Commission to seek enhanced risk disclosures and due diligence on the part of registered investment funds and their managers, when considering investments in China, as outlined in the July 24, 2020 Report on Protecting United States Investors from Significant Risks from Chinese Companies by the President's Working Group on Financial Markets."

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