China ESG newsletter - April 27 2020

Invesco lingers on China JV purchase after turbulent year

Invesco is yet to take advantage of the relaxation of foreign ownership rules to secure full control of its China joint venture which registered surging profits last year at the same time as its global business suffered huge outflows.

China’s phased market opening initially allowed 51%-owned foreign fund management companies and then announced foreign fund managers, such as Invesco, could acquire full ownership of onshore joint-venture entities from the start of April this year.

Shenzhen-based joint venture Invesco Great Wall Fund Management, which was established in 2004, is 49% owned by the U.S. manager and Invesco is expected to be on track to take full control of the business.

Invesco group CEO Martin Flanagan confirmed in the latest earnings call in January that “there’s a meeting of the minds” between the two parties and that the U.S. manager “will increase the shareholding” in the joint-venture business.

 (source from Ignitesasia)

Morningstar to Acquire Sustainalytics and Expand Access to ESG Research, Data, and Analytics for Investors Worldwide

Two firms will join forces to empower all types of investors to drive long-term, meaningful outcomes that contribute to a more just and sustainable global economy.

The transaction consideration includes a cash payment at closing of approximately EUR 55 million (subject to certain potential adjustments) and additional cash payments in 2021 and 2022 based on a multiple of Sustainalytics' 2020 and 2021 fiscal year revenues. Based on the upfront consideration, Morningstar estimates the enterprise value of Sustainalytics to be EUR 170 million. The closing of the transaction is subject to customary closing conditions and is expected to occur early in the third quarter of 2020.

(source from Morningstar)

Hong Kong fund manager launches Belt and Road ESG fund

China Everbright, a Hong-Kong based fund house, announced today the launch of a dual-currency Everbright Belt & Road Green fund.

The ESG-focused fund is aiming to attract RMB 20bn ($2.8bn) in investments across the countries traversed by China's belt and road trade and infrastructure megaproject.

The Everbright Green Investment Fund will focus on ecological environmental protection and green development, as well as focusing on China and markets along the "Belt and Road" route. While exploring diverse investment models, the Fund will invest in enterprises relating to green environment, green energy, green manufacturing and green living, among others.

(source from Internationalinvestment)

Ping An Becomes First Chinese Company to Join UN Principles for Sustainable Insurance

HONG KONG and SHANGHAI, April 23, 2020 /PRNewswire/ -- Ping An Insurance (Group) Company of China, Ltd. (hereafter "Ping An", the "Company" or the "Group", HKEx:2318; SSE:601318) announced that Ping An has become a signatory of the Principles for Sustainable Insurance (PSI), a global sustainability framework of United Nations Environment Programme Finance Initiative (UNEP FI). Ping An is the first company in Mainland China to participate.

The PSI was launched in 2012 and serves as a global practice framework for the insurance industry to address environmental, social and governance (ESG) risks and opportunities. PSI is part of the insurance industry criteria of the Dow Jones Sustainability Indexes and FTSE4Good Index.

(source from YahooFinance)


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