US investors are increasingly asking Asian fund managers to carve out special vehicles so they can invest in the region without falling foul of American investment restrictions on Chinese technology.
American investors held $361bn of Chinese stocks and bonds as recently as the end of 2024, according to the US Treasury, but rules introduced last year threaten large fines and imprisonment for those invested in certain high-tech Chinese sectors, such as advanced semiconductors, quantum computing and artificial intelligence.
Several US states have also brought in laws to restrict their public pension funds from investing in Chinese companies.