Chinese asset managers have made progress in expanding their ESG research capabilities, and onshore Chinese companies have increasingly been included in global benchmarks.
The report describes the two main driving forces for the development of responsible investment and ESG integration in China: top down policy pushing for green growth, and globalisation, which opens China up to scrutiny from international investors. Additionally, a third pressure is proposed: that ESG can be a source of alpha and better returns.
It also provides market insight through five examples of investor practice, using China Asset Management Co., LTD. E Fund Management Co., LTD., Harvest und Management Co., LTD., Hwabao WP Fund Management Co., LTD., and BNP Paribas Asset Management. These show how they are formulating their ESG propositions, and setting out real world examples of where ESG investment has led to downside protection or Alpha generation.