Helena Morrissey doubles down on warnings about Russia ties: Investors risk being ‘on the wrong side of history’
Margarita M. Phillips
3 min read
Baroness Helena Morrissey has urged investors to stop buying stakes in Chinese companies, saying they risk ‘being on the wrong side of history’ if Beijing backs Russia’s invasion of Ukraine.
“Russia shouldn’t invade Ukraine to sow doubt in people’s minds,” said Morrissey, who has long been outspoken in criticizing the city’s ties with China over human rights abuses. man in the country.
But China’s refusal to condemn Russia’s aggression amid the countries’ continued close relations has now heightened its concerns.
“My concern is this: have we in the West been sleepwalking into this crisis? As a European bloc, we are very dependent on Russia for energy supplies, and we have doubled our economic dependence on China. We should at least question that now.
READ BlackRock Says China’s Bullish Outlook Under Review: ‘We Have Questions Now’
Following the invasion of Ukraine last month, a series of asset managers, including Schroders, BlackRock and Abrdn, promised to pull existing investments out of Russia. Many cited strong moral arguments for doing so, playing to their ESG credentials.
With several reports suggesting that Beijing might be willing to provide economic and military assistance to Russia to wage war in Ukraine, Morrissey wondered why investors wouldn’t take the same approach to China.
“At the very least, investors need to consider whether they really want to add to their investments or their business interests,” said Morrissey, the former boss of Newton Investment Management and founder of the 30% Club, who is now chairman. of the AJ Bell online investment platform. .
“What is the point of increasing its presence at a time when there are so many question marks? Are you going to be on the wrong side of history?
READ Helena Morrissey: The City must stop its expansion in China
US President Joe Biden and Chinese leader Xi Jinping spoke for nearly two hours on a March 18 conference call about the war in Ukraine.
According to a White House statement, Biden warned Xi that China and its relationship with the United States would suffer consequences if Beijing provided “material support” for Vladimir Putin’s invasion.
Morrissey said, “I don’t see how you can reconcile investing in certain companies in China. Some are already blacklisted in the US, but we don’t have such a blacklist in the UK. Others have significant controversies.
“People who buy ESG funds with a position in China are probably expecting something different.”
The comments from the prominent City financier come after BlackRock, the world’s biggest asset manager, said it was revising its bullish stance on China.
Jean Boivin, director of the BlackRock Investment Institute – the asset manager’s investment-influencing think tank – said Financial news the rapid rise in Covid cases in China, along with growing concerns over Beijing’s ties to Russia, had led it to put its outlook for an overweight in Chinese assets “under review”.
“Clients are focusing on geopolitics now post-Ukraine, and there’s more uncertainty about where China will land on that,” Boivin said.
BlackRock last year became the first foreign company to be granted permission to operate a 100% business in China, following a letter from chief executive Larry Fink to shareholders in which he said the market China “represents an important opportunity”.
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