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S 5237118th CongressFailed / ExpiredSenate

No China in Index Funds Act

Policy Area: Finance and Financial Sector
View on Congress.gov
Origin Chamber
Senate
Last Updated
May 27, 2025
Latest Action Date
Sep 25, 2024

Latest Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Official Summary

Official summary has not been imported yet.

GovScope Watchdog™

AI Government Intelligence™
Executive Summary

The No China in Index Funds Act is a Senate bill introduced in the 118th Congress aimed at restricting or prohibiting investments in Chinese companies within index funds. The bill was read twice and referred to the Committee on Banking, Housing, and Urban Affairs but ultimately failed or expired without further legislative action. The bill falls under the policy area of Finance and Financial Sector. No official summary or full text is publicly available, limiting detailed analysis of specific provisions.

Bottom Line

This bill sought to exclude Chinese companies from index funds but did not advance beyond committee referral and has expired.

Policy Risk Level
🟡 Medium
Neutral Risk Assessment
Key Points
  • The bill was introduced in the Senate during the 118th Congress and referred to the Committee on Banking, Housing, and Urban Affairs.
  • It addresses financial sector regulations, specifically targeting index funds and their holdings related to China.
  • The bill did not progress to a vote and is currently classified as failed or expired.
Who Benefits?

['U.S.-based index fund managers and investors seeking to avoid exposure to Chinese companies', 'Potentially U.S. financial institutions focusing on domestic or non-China investments']

Potential Concerns

['Lack of publicly available full bill text and official summary limits understanding of implementation mechanisms and enforcement provisions', 'Potential challenges in defining and identifying Chinese companies within index funds', 'Possible impacts on investment diversification and fund performance not addressed', 'Oversight and authority for enforcement are unclear due to missing details']

Political Context

The bill was introduced in the Senate and referred to a relevant committee but did not advance further. It reflects ongoing legislative interest in regulating financial exposure to China within U.S. investment products. The failure or expiration status indicates it did not gain sufficient legislative traction during the 118th Congress.

Hidden Impact Review

Hidden impact flags detected: 2

GovScope reviewed 2 policy-risk categories. Hover for a quick definition. Click detected flags for bill-specific details.

2 Detected
Detected Flags
Indirect Effects

['Potential shifts in investment strategies by index fund managers to comply with restrictions if enacted', 'Possible impacts on market dynamics for Chinese companies due to reduced investment inflows from index funds', 'Increased demand for alternative investment products excluding Chinese assets']

GovScope Watchdog Notes

The absence of a full bill text and official summary limits transparency and public understanding of the bill's specific provisions and enforcement. This lack of information poses challenges for oversight and comprehensive policy analysis. Monitoring future legislative efforts with complete documentation is recommended for effective transparency.

Passage Likelihood: LowConfidence: 60%Model: gpt-4.1-mini

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