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US Lawmaker Confronts Morgan Stanley Over Chinese IPO Ties to Uyghur Forced Labor

A US lawmaker is pressing Morgan Stanley over its IPO involvement with a Chinese firm linked to Uyghur forced labor. Chairman John Moolenaar sent a letter to the bank's CEO seeking additional information. He argues that such partnerships undermine US efforts to combat forced labor worldwide. This follows similar actions against other major banks regarding Chinese company IPOs.

Key Points: Morgan Stanley Pressed on Chinese Firm IPO Under Uyghur Forced Labor Act

  • US lawmaker demands answers on Morgan Stanley's IPO underwriting for Zijin Gold
  • Zijin Mining Group is listed on UFLPA Entity List for forced labor ties
  • Moolenaar cites evidence of Zijin's global human rights violations
  • Morgan Stanley faces regulatory and reputational risks from the deal
2 min read

US lawmaker presses Morgan Stanley over IPO ties to Chinese firm listed under Uyghur Forced Labor Act

Chairman Moolenaar questions Morgan Stanley's IPO involvement with Zijin Gold, a subsidiary of a company listed under the Uyghur Forced Labor Prevention Act.

"When American financial institutions partner with Chinese companies associated with Uyghur forced labor, they undermine the US government's efforts to curb forced labor worldwide. - Chairman John Moolenaar"

Washington DC, November 14

Chairman John Moolenaar (R-MI) of the Select Committee on China addressed a letter to Morgan Stanley CEO Ted Pick, seeking additional information regarding the company's involvement in underwriting the initial public offering (IPO) of Zijin Gold International Company, a subsidiary of Zijin Mining Group, which is listed on the US government's Uyghur Forced Labor Prevention Act (UFLPA) Entity List, as stated in a release from the Select Committee on the Chinese Communist Party (SCCCP).

Moolenaar expressed in the letter, "When American financial institutions partner with Chinese companies associated with Uyghur forced labor, they undermine the US government's efforts to curb forced labor worldwide. By enabling these businesses to access global capital markets, US underwriters are allowing them to broaden their operations and increase their engagement in forced labor, which directly opposes the intentions of US law," as noted in the SCCCP release.

"Evidence suggests that Zijin Mining has a history of human rights violations. A brief examination of reports regarding Zijin Mining reveals its shocking record of human rights infringements around the world. From Xinjiang to Serbia to Colombia, organizations have highlighted that Zijin Mining consistently operates as a significant human rights violator," Moolenaar adds.

"Morgan Stanley's involvement in underwriting Zijin Gold's IPO exemplifies the type of commercial activity the US government aims to avert. By participating in Zijin Gold's IPO, Morgan Stanley exposes itself and its US investors to significant risks regarding regulatory compliance, financial stability, and reputation," as cited in the SCCCP release.

In July, Moolenaar issued subpoenas for documents from JPMorgan and Bank of America concerning their involvement in underwriting the IPO of the Chinese military company CATL, as noted in the SCCCP release.

Previously, the House Select Committee on the Chinese Communist Party (SCCCP) issued a serious warning regarding a series of targeted cyber-espionage operations allegedly supported by Beijing, indicating that these attacks aim to infiltrate US government agencies, trade policy experts, and organizations engaged in high-stakes US-China negotiations.

- ANI

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Reader Comments

R
Rohit P
Finally some action against these unethical business practices. As an Indian investor, I would never put my money in companies associated with forced labor. Morgan Stanley should know better.
A
Arjun K
While I support human rights, I worry this might affect global markets too much. Many Indian companies have business ties with China - we need balanced approach that doesn't hurt innocent investors.
S
Sarah B
Good to see US taking strong stance. India should also review its business relationships with Chinese companies involved in human rights violations. Ethics over profits always! ✊
V
Vikram M
This is why we need stronger regulations globally. Chinese companies have been getting away with too much for too long. Hope Indian regulators are watching this closely.
M
Michael C
While the concerns are valid, I hope this doesn't become another political tool. We need consistent application of human rights standards, not selective targeting based on geopolitical interests.

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