Texas Gov. Abbott orders state agencies to divest from China

Published On Nov 22, 2024, 2:17 PM

Texas Governor Greg Abbott has mandated that all state agencies halt investments in China and divest any existing holdings due to perceived financial and security risks. He cited aggressive actions by the Chinese Communist Party as a significant concern and emphasized the importance of protecting Texas' financial interests. This directive affects major investment bodies, including the Teacher Retirement System of Texas, which has significant investments in Chinese assets.

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Stock Forecasts

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The push for divestment from China reflects a broader trend among U.S. states and investors who are concerned about geopolitical risks associated with China. This may lead to a decline in investments towards Chinese firms and could negatively impact related sectors or ETFs that focus on international investments, particularly in emerging markets or China-focused funds. Investors may seek to shift towards U.S.-based companies or those less exposed to Chinese risks.

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