CHARLESTON, W.Va. (WVDN) – State Treasurer Larry Pack, who serves as the Chairman of the West Virginia Board of Treasury Investments, plans to recommend the Board discuss and approve a policy that would divest funds from Chinese-owned companies. The Board of Treasury Investments (BTI) manages more than $10.5 billion in short-term state and local government operating funds.
“While governments and financial institutions around the globe are working to cease Chinese investments, I hope this move reassures our citizens that they can trust our Office to manage their money in a responsible manner which reflects their interests,” Treasurer Pack said. “West Virginia needs to take a stand against investing in countries that are considered bad actors. Like President Trump, I plan on putting American industry and West Virginia first. Divesting in China means investing more dollars in our great state.”
Treasurer Pack will propose a Prohibited Foreign Investments Policy during the Board’s quarterly meeting on February 25. If adopted, the policy would prevent direct investments from companies affiliated with the government of the People’s Republic of China, the Chinese Communist Party, the Chinese military, or any instrumentality or combination thereof.
If the Board determines that a direct holding in a Chinese company exists, the Board will establish a plan to divest the investment and complete the divestment as soon as financially prudent, according to the proposed policy.
Treasurer Pack also plans on proposing a similar policy as Chairman of the West Virginia Investment Management Board (IMB) later this year to ensure the state’s long-term investments and pensions of the citizens of West Virginia are not invested with the People’s Republic of China.
“Not one dollar of West Virginia taxpayer money should be invested in any financial asset issued by the Chinese government,” Treasurer Pack said. “West Virginia should only invest state funds in high-quality, respectable assets – and China clearly has not met that criteria. I will be working on this issue over the next few months so that when I become the Chairman of the IMB our citizens can rest assured we do not have any government revenue invested in Chinese assets.”
While the BTI manages short-term operating funds for the state, it does not manage state pension funds. Those funds are managed separately by the IMB, which does not fall under the State Treasurer’s Office.
In April 2024, the West Virginia College and Jumpstart Savings Program Board of Trustees approved a proposal from former State Treasurer Riley Moore to cease any China investments from the SMART529 Select Plan, a direct-sold qualified tuition plan open to residents across the United States.
The West Virginia Board of Treasury Investments will hold its quarterly meeting on February 25 at 11:45 a.m.
