U.S. financial giant Morgan Stanley has come under scrutiny from a U.S. House of Representatives select committee over its role in underwriting the Hong Kong initial public offering of Chinese gold miner subsidiary Zijin Gold International in September.

The committee argues that Morgan Stanley’s involvement exposed U.S. investors to regulatory, financial and reputational risk and may have facilitated the parent company’s efforts to evade import prohibitions linked to alleged forced-labour practices in Xinjiang.

The parent firm, Zijin Mining Group, is listed on a U.S. government import-restricted entity list for ties to alleged human-rights abuses of Uyghur minorities.

The IPO of its offshore gold-mining arm, which raised roughly HK$25 billion (around US$3.2 billion), was co-sponsored by Morgan Stanley and Citic Securities.

In a letter dated November 13 2025, Committee Chair Representative John Moolenaar requested comprehensive documents and communications from Morgan Stanley’s chief executive, Ted Pick, citing concern that the bank may have helped channel U.S. and international capital to a company linked to sanctioned activities.

Morgan Stanley declined to comment.

Neither Zijin Gold nor its parent responded immediately.

The committee warned that “when U.S. financial institutions engage with Chinese firms linked to Uyghur forced labour, they undermine the U.S. government’s goal of deterring forced labour globally.” The IPO has drawn further questions as to whether the subsidiary listing effectively allowed the parent company to monetise non-Chinese assets and bypass U.S. import restrictions while retaining control.

Much of the initial public offering capital was earmarked for acquisitions, mine upgrades and broader global expansion of the miner’s overseas gold operations.

The strong market reception—in which the IPO reportedly surged more than 60 per cent on its first day—underscores the significant international demand for the offering despite the parent’s sanctioned status.

The inquiry follows a broader push by the U.S. Congress to hold Wall Street banks accountable for underwriting listings of Chinese companies tied to state, military or forced-labour risks.

Earlier this year the same committee issued subpoenas to other major banks over backing of another high-profile IPO connected to a Chinese electric-vehicle battery maker listed as a Chinese military company.

As the review proceeds, Morgan Stanley faces potential reputational damage and increased regulatory oversight.

The outcome may also influence how U.S. banks assess the risks of underwriting complex cross-border listings involving sanctioned or restricted entities in the future.