Colorado state Treasurer Mike Coffman warned that state and local government employee pension funds could inadvertently aid in modernizing and developing Chinese military capabilities when they invest in certain Chinese businesses. Mr. Coffman is calling for the state to develop a clear written investment policy that would prohibit public pension funds from making investments in Chinese defense-related industries. He noted the $28 billion Public Employees Retirement Association of Colorado, Denver, currently has holdings in Chinese companies totaling $42 million. There are dozens of other public pension funds in Colorado that could accidentally be investing millions to support Chinas military development. Until the federal government creates a policy on this, Colorado must take the initiative, Mr. Coffman said in a statement.