United States of America: No China in Index Funds Act was introduced to the Senate (Bill No. S 2046)

On 12 June 2025, the No China in Index Funds Act (S. 2046) was introduced to the Senate of the United States. The Bill applies to index funds, including investment companies and hedge funds tracking securities indices. It prohibits them from investing in Chinese companies, including entities incorporated in China, operating primarily in China, or influenced by the Chinese government. A 180-day safe harbour is provided for divestment of existing holdings, and violations may incur civil penalties of up to USD 250,000 or twice the value of the prohibited transaction. The Securities and Exchange Commission is empowered to issue implementing rules.