Chairman John Moolenaar (R-MI) of the House Select Committee on the Chinese Communist Party has raised concerns about Morgan Stanley’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 due to its connections to forced labor.
In an interview with FOX Business Network's "Mornings with Maria," Moolenaar discussed the potential implications for Morgan Stanley and its CEO in connection with this business relationship. He stated, "Morgan Stanley and their CEO face serious risks here—in terms of financial risk, risk to their reputation, regulatory risk—because they are helping provide resources for this entity that's on the forced labor list that has been participating in the genocide. Whether it's in Xinjiang where [Zijin] have facilities, they're also known for their human rights abuses in Colombia and Serbia…So we are requesting documents and understanding what kind of due diligence did [Morgan Stanley] do on this, and how did they overlook the fact that they're providing resources to this entity that promotes slave labor and enabling them to expand that around the world?"
The Select Committee is seeking documentation from Morgan Stanley regarding its due diligence processes related to Zijin Gold International Company.
