Texas Governor Orders Agencies to Sell Assets in China

Texas Governor Greg Abbott has ordered state agencies to stop investing in China and sell assets there as soon as possible.

Texas Governor Greg Abbott issued the order, citing financial and security risks, a sign that rising tensions between the US and China are starting to impact global capital flows, according to Reuters today, November 22.

Texas Governor Greg Abbott speaks at an event in Milwaukee, Wisconsin (USA) on July 17.

In a letter to state agencies dated November 21 and posted on his website, Gov. Abbott (a Republican), wrote that China's "aggressive actions" have increased the risks to Texas investments in China and asked investors to withdraw.

"I am directing Texas investment institutions that you are prohibited from making any new investments of state money in China. If you have any existing investments in China, you must divest at the first opportunity," Mr. Abbott wrote in the letter.

In the letter, Governor Abbott said he had asked the University of Texas/Texas A&M Investment Management Company (UTIMCO), which manages nearly $80 billion, to divest from China earlier this year.

There is currently no information about the reaction from UTIMCO or China regarding Mr. Abbott's above order.

Texas state agencies also include the Texas Teachers Retirement System, which had $210.5 billion under management at the end of August, according to the organization's annual report.

Texas has taken an increasingly aggressive stance on investments from its agencies, previously restricting public pension funds from doing business with companies that adopted environmental, social and governance principles, according to Reuters.

Source: https://thanhnien.vn/thong-doc-texas-ra-lenh-cho-cac-co-quan-ban-tai-san-o-trung-quoc-185241122173342531.htm