Chairman John Moolenaar of the House Select Committee on the Chinese Communist Party has sent a letter to Morgan Stanley CEO Ted Pick, seeking clarification about the bank’s role in underwriting the initial public offering (IPO) of Zijin Gold International Company. Zijin Gold is a subsidiary of Zijin Mining Group, which appears on the U.S. government's Uyghur Forced Labor Prevention Act (UFLPA) Entity List.
In his letter, Moolenaar expressed concern over American financial institutions’ involvement with Chinese companies that have been linked to forced labor practices targeting Uyghurs. "When U.S. financial institutions engage with Chinese firms linked to Uyghur forced labor, they undermine the U.S. government’s goal of deterring forced labor globally. By facilitating these companies’ access to international capital markets, U.S. underwriters are enabling them to scale up their operations and engage in more forced labor, directly contravening the intent of U.S. law," Moolenaar wrote.
He also cited reports documenting alleged human rights abuses by Zijin Mining in several countries: "Reports indicate that Zijin Mining has a track record of human rights abuses. Even a cursory look at reports about Zijin Mining shows the horrific track record of human rights abuses the company perpetrates across the globe. From Xinjiang to Serbia to Colombia, groups have identified that Zijin Mining operates as a chronic human rights abuser," he continued.
Moolenaar warned Morgan Stanley about potential risks: "Morgan Stanley’s underwriting of Zijin Gold’s IPO showcases the very type of commercial activity the U.S. government seeks to prevent. By engaging in Zijin Gold’s IPO, Morgan Stanley places itself and its U.S. investors at serious risk of regulatory, financial, and reputational harm."
This action follows an earlier move by Moolenaar in July when he subpoenaed documents from JPMorgan and Bank of America regarding their roles in underwriting an IPO for CATL, a Chinese military company.
