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Ban on Index Funds and Investment Companies Investing in Chinese Firms.

This law prohibits US index funds and registered investment companies (like mutual funds) from purchasing shares in defined Chinese companies. If you invest through these funds, they will be required to sell existing holdings within one year, potentially altering the composition of your retirement or savings portfolio. The goal is to safeguard US financial markets and prevent funding entities linked to the Chinese government.
Key points
Index funds and registered investment companies are banned from making new investments in defined "Chinese companies."
Existing investments in these companies must be sold off (divested) within a one-year period.
Funds must create and share a written plan detailing how they will divest from these holdings.
article Official text account_balance Process page
Expired
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Additional Information
Print number: 118_S_4589
Sponsor: Sen. Scott, Rick [R-FL]
Process start date: 2024-06-18
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Safeguarding U.S. Financial Leadership Against Communist China Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_4589.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-06-18.

What are the main provisions?

Key points include:

  • Index funds and registered investment companies are banned from making new investments in defined "Chinese companies."
  • Existing investments in these companies must be sold off (divested) within a one-year period.
  • Funds must create and share a written plan detailing how they will divest from these holdings.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Scott, Rick [R-FL].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Economy Security