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Ban on index funds investing in Chinese companies.

This Act prohibits index funds and index-tracking hedge funds from investing in Chinese companies. This means that your savings invested in popular index funds may be redirected away from the Chinese market, potentially affecting the composition of your investment portfolio and returns. Funds are given 180 days to divest existing investments, and violations carry significant civil penalties.
Key points
Index funds and index-tracking hedge funds are prohibited from purchasing securities of Chinese companies.
A Chinese company is broadly defined, including firms incorporated in China, controlled by the Chinese government, or those with a majority of assets/employees located in China.
Funds have a 180-day grace period from the Act's enactment date to sell off (divest) any existing investments in Chinese companies.
Violations of the prohibition are subject to a civil penalty of up to $250,000 or twice the amount of the transaction that constitutes the violation.
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Status:
Expired
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Additional Information
Print number: 118_S_5237
Sponsor: Sen. Ricketts, Pete [R-NE]
Process start date: 2024-09-25
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-flash-latest
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

No China in Index Funds Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_5237.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-09-25.

What are the main provisions?

Key points include:

  • Index funds and index-tracking hedge funds are prohibited from purchasing securities of Chinese companies.
  • A Chinese company is broadly defined, including firms incorporated in China, controlled by the Chinese government, or those with a majority of assets/employees located in China.
  • Funds have a 180-day grace period from the Act's enactment date to sell off (divest) any existing investments in Chinese companies.
  • Violations of the prohibition are subject to a civil penalty of up to $250,000 or twice the amount of the transaction that constitutes the violation.
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. Ricketts, Pete [R-NE].

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.

What is the impact of this bill?

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Economy Public Investments