US House Panel Warns Morgan Stanley Over China Firm's Forced Labor IPO

Select Committee on China Chairman John Moolenaar is probing Morgan Stanley's role in the IPO for Zijin Gold, a subsidiary of a firm on the US forced labor list, citing a history of human rights abuses and undermining US law.

Moolenaar Questions Morgan Stanley on China IPO

Chairman John Moolenaar (R-MI) of the Select Committee on China addressed a letter to Morgan Stanley CEO Ted Pick, seeking additional information regarding the company's involvement in underwriting the initial public offering (IPO) of Zijin Gold International Company, a subsidiary of Zijin Mining Group, which is listed on the US government's Uyghur Forced Labor Prevention Act (UFLPA) Entity List, as stated in a release from the Select Committee on the Chinese Communist Party (SCCCP).

Undermining US Law and Human Rights Concerns

Moolenaar expressed in the letter, "When American financial institutions partner with Chinese companies associated with Uyghur forced labor, they undermine the US government's efforts to curb forced labor worldwide. By enabling these businesses to access global capital markets, US underwriters are allowing them to broaden their operations and increase their engagement in forced labor, which directly opposes the intentions of US law," as noted in the SCCCP release.

"Evidence suggests that Zijin Mining has a history of human rights violations. A brief examination of reports regarding Zijin Mining reveals its shocking record of human rights infringements around the world. From Xinjiang to Serbia to Colombia, organizations have highlighted that Zijin Mining consistently operates as a significant human rights violator," Moolenaar adds.

"Morgan Stanley's involvement in underwriting Zijin Gold's IPO exemplifies the type of commercial activity the US government aims to avert. By participating in Zijin Gold's IPO, Morgan Stanley exposes itself and its US investors to significant risks regarding regulatory compliance, financial stability, and reputation," as cited in the SCCCP release.

Committee's Previous Actions on US Financial Institutions

In July, Moolenaar issued subpoenas for documents from JPMorgan and Bank of America concerning their involvement in underwriting the IPO of the Chinese military company CATL, as noted in the SCCCP release.

Warning on Beijing-Backed Cyber-Espionage

Previously, the House Select Committee on the Chinese Communist Party (SCCCP) issued a serious warning regarding a series of targeted cyber-espionage operations allegedly supported by Beijing, indicating that these attacks aim to infiltrate US government agencies, trade policy experts, and organizations engaged in high-stakes US-China negotiations. (ANI)

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