order<\/a> from President Joe Biden started to place some limits on outbound American investment in “countries of concern” regarding “national security technologies” and related products.\u00a0<\/p>\nCalPERS responded to financial and geopolitical concerns by stating it actively monitors investment regulations and chooses responsible investment managers.\u00a0<\/p>\n
\u201cCalPERS is a global investor that looks for opportunities across national boundaries and business sectors to deliver the returns needed to provide retirement security to our more than 2 million members,\u201d said CalPERS information officer Abram Arredondo to The Center Square in an email. \u201cWe closely monitor discussions in Washington D.C. to comply with government requirements on investments overseas. CalPERS also conducts a rigorous selection process for managers and regularly engages with them to ensure our investments are being responsibly overseen.\u201d\u00a0<\/p>\n
Beyond national security, Furchtgott-Roth says investing in China exposes foreign investors like CalPERS to undue risks.\u00a0<\/p>\n
\u201cIt\u2019s possible that CalPERS thinks they can get a greater return than in other areas, but it\u2019s very risky, investing in these Chinese companies, because who knows what China is going to do, and who knows what President Trump is going to do about China, which would send the value of these investments down,\u201d said Furchtgott-Roth. \u201cAlready last month, Chinese exports were diminishing, which is going to hurt the Chinese economy \u2014 President Trump is already harming the Chinese economy with these tariff threats.\u201d<\/p>\n
Furchtgott-Roth also pointed to China\u2019s inverted demographic pyramid \u2014 in which an aging population is supported by fewer and fewer young people due to the nation\u2019s one-child policy \u2014 as a long-term economic challenge.\u00a0<\/p>\n
Other experts pointed to the aftermath of the financial implosion of Chinese real estate developer Evergrande as evidence that American investors could end up at a significant disadvantage compared to Chinese investors when companies run into financial difficulty.<\/p>\n
\u201cForeign bond investors lost more money than domestic creditors, and that\u2019s the kind of thing that can happen both with debt investments and equity investments \u2014 the government can arbitrarily decide to discriminate against foreign investors,\u201d said Marc Joffe, a public finance expert and visiting fellow at the California Policy Center, in an interview with The Center Square.\u00a0<\/p>\n
Joffe also said that in addition to the transparency, liquidity, and high management fee concerns typical of public pension investments in private equity, \u201cthe additional dimension in investing in Chinese startups and private companies is the government can just say, hey, you, CalPERS \u2026 you\u2019ve made too much money and this is not good for the Chinese people, so we\u2019re going to expropriate you.\u201d<\/p>\n
The Center Square recently reported<\/a> CalPERS’ private equity Clean Energy & Technology Fund lost 71% of the nearly half a billion dollars it invested in the fund, as private equity fund managers raked in tens of millions of dollars, highlighting the risks of public pension investments in private equity.<\/p>\nHongShan did not respond to The Center Square’s requests for comment.<\/p>\n","protected":false},"excerpt":{"rendered":"(The Center Square) – Since 2022, California\u2019s main state pension fund has committed hundreds of millions of dollars…\n","protected":false},"author":2,"featured_media":288436,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[7045,28,2356,10816,4379,147,530],"class_list":["post-288435","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-accountability","tag-business","tag-california","tag-investigations","tag-military","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/288435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=288435"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/288435\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/288436"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=288435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=288435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=288435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}