China ESG newsletter - 20200420

The CSI Huaxia Bank ESG Index and the CSI ESG120 Strategy Index will be officially launched at the end of April

The "CSI Huaxia Bank ESG Index" and "China Securities ESG120 Strategy Index" developed by Huaxia Bank will be officially launched on April 30. These two indexes are based on the first batch of indexes developed by China Securities Index Company's "ESG Evaluation System". It is understood that the above two indexes remove the stocks of listed companies with low ESG scores from the sample stocks of the CSI300 Index, and calculate a comprehensive score based on the valuation, dividends, quality and market factor scores, and select 120 stocks with a higher comprehensive score. The index sample stocks were compiled with "June 30, 2017 as the base day and 1,000 points as the base point."

(Social Value Investment Alliance CASVI)

Investing in China: what the world's largest investors think

Despite the position and continued growth of China in the world economy, most institutional investors have not optimized their portfolios in regard to its equity markets. Most (61%) get their exposure to China’s equity markets through their emerging markets strategies while 41% do so through their investments in global multinational corporates.

Around one third of respondents see China as a long-term strategic allocation but almost half said that they are not satisfied with their allocations with one fifth intending to increase (some significantly) their dedicated allocations to China’s equity markets within the next three to five years.

Respondents said that they have low levels of trust in China’s government (67%) and negative perceptions of corporate governance policies (65%). Almost half have questions about market access.

 (source from Wealthprofessional)

ESG Equity Funds in the Sell-Off

According to Morningstar Direct data, two-thirds of sustainable funds have performed better than their Morningstar Category Average, a measure which covers the performance of all funds, sustainable and non-sustainable.

 (source from Morningstar)

SinoPac launches Taiwan's first active ESG equities strategy

Taiwan’s SinoPac Securities Investment Trust has rolled out the first environmental, social and governance fund in the market that adopts an active investment approach, the Commercial Times reports.

SinoPac SITC commenced initial fundraising for its Taiwan ESG Sustainability Select Fund on April 15, touting an actively managed equities investment strategy and high dividend payouts.

Local media reports say that no other ESG fund in Taiwan currently adopts an active investment approach.

The underlying assets for the fund will be selected from the FTSE4Good TIP Taiwan ESG Index, which consists of domestically listed Taiwanese companies that adhere to globally recognised ESG integration standards and corporate responsibility practices. 

 (source from Ignitesasia)


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