Vanguard invests in Chinese military-linked companies: report

Index providers, Western managers face growing pressure over Chinese investments

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The report by the Coalition for a Prosperous America said a Vanguard fund has put money into companies sanctioned by the U.S. government over alleged human rights abuses. © AP

ECHO WONG and KENJI KAWASE, Nikkei staff writers

HONG KONG -- Top index fund manager Vanguard has invested in scores of Chinese companies that have links to the nation's military or have been sanctioned by the U.S. government over alleged human rights abuses, according to research by a bipartisan U.S. group.

The $98.7 billion Vanguard FTSE Emerging Markets exchange-traded fund has invested in the subsidiaries of 60 companies that are part of China's military-industrial complex, according to the report by the Coalition for a Prosperous America.

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