Texas Gov. Abbott orders state agencies to divest from China

Texas Gov. Greg Abbott has ordered all agencies in the state to stop investing in China and to sell off any holdings as soon as possible, citing financial and security risks.In a letter dated Nov. 21, Abbott said "belligerent actions" of the Chinese Communist Party (CCP) "across the Southeastern Pacific region and the world" had increased risks to Texas' investments in China, and told investors to get out."I direct Texas investing entities that you are prohibited from making any new investments of state funds in China," the Republican wrote. "To the extent you have any current investments in China, you are required to divest at the first available opportunity."The state of Texas has been taking an increasingly activist stance in its agencies' investments, having previously restricted public pension funds from doing business with Wall Street firms that have embraced environmental, social and governance principles.STATE LEADERS URGED TO DIVEST PENSION FUNDS FROM CHINA: WATCHDOGIts state agencies include the Teacher Retirement System of Texas, which had $210.5 billion under management at the end of August, according to its annual report.The TRS has roughly $1.4 billion exposure to Chinese yuan and Hong Kong dollar assets, and listed Tencent Holdings as its 10th largest position, worth about $385 million at current prices.Abbott's letter said he had told the University of Texas/Texas A&M Investment Management Company (UTIMCO), which manages nearly $80 billion, to divest from China earlier this year.US COMPANIES WITH HIGH CHINA EXPOSURE FACE MORE RISKSThe Texas governor has warned repeatedly that China is a rising threat to the U.S.During an interview on "Mornings with Maria" last year, Abbott discussed Latin American countries becoming increasingly dependent on China and the lasting impact it could have on Texas as well as the U.S."China is really coming in and changing the attitudes now of Central and South American countries," Abbott said, suggesting that the U.S. adversary's influence over the "entire region around the southern part of the United States" is "quite alarming."GET FOX BUSINESS ON THE GO BY CLICKING HEREIn an op-ed published on Fox News days earlier, Abbott argued that "China’s sights are firmly set" on our southern neighbors as Texas stands at the "gateway of our nation and Latin American countries" as a trading partner.Reuters and FOX Business' Alicia Warren contributed to this report.Weiter zum vollständigen Artikel bei FOX Business Weiter zum vollständigen Artikel bei FOX Business