S.2046

The No China in Index Funds Act prohibits index funds from investing in Chinese companies.

The No China in Index Funds Act defines a "Chinese company" as one incorporated in China, with majority assets or employees in China, or controlled by the Chinese government. An "index fund" is defined as an investment company or hedge fund tracking an index of securities. The Act prohibits index funds from investing in Chinese companies, with a safe harbor allowing existing investments to remain for 180 days post-enactment. Violators face civil penalties up to $250,000 or twice the transaction amount, whichever is greater.