All US financial institutions have a duty to establish governance principles when it comes to investing in entities that directly or indirectly facilitate human rights abuses. The boards of these institutions have a moral duty, and perhaps even a fiduciary duty to divest from companies that contribute to human rights violations.
Pension funds, university endowments, indexes, mutual funds, insurance companies, venture capital firms, institutional investors, and particularly emerging index funds, at a minimum, should disclose to their constituents the Chinese companies they invest in.
Chinese companies’ financial practices are opaque for a reason. Chinese companies on US stock exchanges do not comply with Sarbanes-Oxley transparency provisions, which puts all investors at risk.