U.S. Congressional Report Warns Investors, Banks of China Risks

A body advising the U.S. Congress warned of growing risks for domestic investors from strains in China’s banking system and questioned Wall Street’s push into the Communist Party-ruled nation as it opens its capital markets.

The report comes at a time of growing tension between the U.S. and China with a protracted trade dispute still far from a resolution. The U.S. administration is examining whether to keep government pension funds from investing in Chinese equities and mulling a range of sanctions to punish it over a crackdown on Hong Kong. The Senate last week passed a bill that would limit ...