No matter how you look at it, China stocks are a money loser for investors these days. How bad is it? Below are some charts showing the performance of Shanghai, Shenzhen, Hong Kong, and U.S. listed shares of Chinese companies compared to U.S. rivals, and benchmark indexes like the S&P 500.
As some in the Senate now consider removing China stocks from the Thrift Savings Plan (TSP), a roughly $720 million pension system serving some 6.5 million civil servant employees and the military, geopolitical risk and a soft decoupling has turned a must-have investment into a questionable one. Investors are losing money in China.
In 2022, the Federal Retirement Thrift Investment Board said that China investments were “unfitting” for TSP. “We agree it is unfitting for Americans to invest in companies from China or elsewhere that undermine U.S. national security,” the Board wrote in a letter obtained by Fox Business News at the time. That letter was addressed to Republican Sens. Marco Rubio of Florida, Tom Cotton of Arkansas, and Tommy Tuberville of Alabama who have taken a lead in removing China from TSP. Last week, the House rejected an amendment to the National Defense Authorization Act that would have removed China from federal retirement plans. As it is, federal employee pension fund managers are not preserving their clients’ wealth by investing in China.
Read more about the Federal Retirement Thrift Investment Board developments at https://prosperousamerica.org/china-stocks-thrift-savings-plan-government-pensions/